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Farmers adopting BMP, according to TFI/CTIC study

Farmers are adopting best management practices in record numbers, according to a survey just released by the Conservation Technology Information Center (CTIC) and The Fertilizer Institute (TFI). The survey, which reached slightly less than 2,000 farmers nationwide, helped to gain a better understanding of environmental management measures on U.S. farms and barriers to adoption. The respondents represent 2.5 million acres of farmed cropland.

“The results of this survey have provided us with knowledge of producer practices that will help us best identify how we can continue to increase adoption rates of best management practices and conservation practices,” said TFI President Ford West. “It is satisfying to know that 60 percent of those surveyed have fully-adopted nutrient management plans, and indicators are positive that farmers are using the right nutrient product at the right time, right place and right rate.”

Survey respondents had an average of 29 years of farming experience and were typically 52 year-old males. Seventy-five percent of those answering the survey farm a corn-soybean or a corn-soybean-wheat rotation. Seventy-nine percent had at least some college education.

“These survey results show that many farmers are actively engaged in conservation – in fact, conservation tillage was the most adopted practice among row crop producers,” said CTIC Executive Director Karen Scanlon. “We also have a clear picture about why some producers are not choosing conservation practices. That’s important, because now we can better address their concerns and work to overcome those barriers.” The comprehensive survey netted great results.

Among the top messages taken from the survey is that having a conservation plan is a key predictor of additional conservation behavior. More than half of row crop producers who responded to the survey have fully adopted conservation tillage, nutrient management, grassed waterways, and integrated pest, disease, and weed management.

In addition, farmers indicated that financial assistance is mostly preferred over educational and technical assistance, as related to best management practice adoption. In six of the 12 categories, including conservation buffers, GPS yield monitor, irrigation water management, precision agriculture, terraces, and water and sediment control basins, financial assistance was most preferred.

The top four respected information sources cited are Cooperative Extension, certified crop advisers, agribusiness, and Natural Resources Conservation Service. Family members and local farming leaders rated amongst the lowest as preferred information sources.

A positive correlation exists between large-scale farms and adoption of conservation tillage and no-till. The survey also showed that large landowners are more conservation-oriented than small landowners.

About half of farmer-respondents soil test according to state recommendations. Economic concerns and time were primary obstacles to not testing. Twenty-four percent of corn growers, 23 percent of soybean growers, and 23 percent of wheat growers cited test costs as a reason they don’t soil test.

Scotts reports increased revenues

Marysville, Ohio-The Scotts Miracle-Gro Co. reported a 14 percent increase in revenues for the first quarter ending Dec. 29, 2007, to $308.7 million from the year-ago $271.2 million. While the company continued to post a seasonal loss, earnings did improve by 4 percent, to a loss of $56.8 million ($.89 per diluted share), versus the year-ago loss of $59.4 million ($1.09 per share). “We had a strong start to the year with good sales growth throughout the business and control over expenses,” said Jim Hagedorn, Scotts chairman and CEO. “We are well positioned as we prepare for the beginning of the lawn and garden season. We continue to see strong support from our retail partners, and we remain confident that consumers will remain committed to the category and to our brands.” Scotts reported strong consumer demand, even though the quarter normally only represents 10 percent of annual sales. “Consumer purchases of lawn fertilizer improved 7 percent in the quarter, which reinforces our confidence that consumers remain engaged in the category in spite of the economic concerns. We also saw a nearly 60 percent year-over-year improvement in grass seed purchases and a 10 percent improvement in growing media.” Scotts LawnService had revenues of $38.3 million, up from $25.8 million. “With the launch of new products this year, and a larger investment in both marketing and sales support, we remain confident that sales this year can grow 6-8 percent and that operating profits will improve by as much as 6 percent,” said Dave Evans, CFO. “Due to the incremental interest expense impact of our recapitalization in mid-2007 and our decision to make investments in several long-term projects this year we remain committed to our guidance that adjusted net income for fiscal 2008 will be flat to slightly down from 2007 levels.”

Phosphate Holdings announces special dividend

Madison, Miss.-Phosphate Holdings Inc. reports that on Jan. 29 its board of directors declared a special dividend of $1.50 per share of common stock of the company. The dividend will be paid on March 7, 2008, to stockholders of record on Feb. 25, 2008. The company said the timing and amount of future dividends will be determined in light of the company’s results of operations, financial condition, liquidity needs, restrictions under any agreements or under applicable law, and other factors deemed relevant by the board. The company is a Delaware corporation and the sole stockholder of Mississippi Phosphates Corp. Miss Phos is a Delaware corporation, with its executive headquarters in Madison, Miss. It owns and operates manufacturing facilities in Pascagoula, Miss., that produce DAP.

Organic fertilizer producer expands again

Boston-Converted Organics Inc. has announced further expansion into organic fertilizers with acquisition of a leading liquid fertilizer product line and its state-of-the-art production facility, along with proprietary technology for producing liquid and solid fertilizer from biodegradable wastes. Company officials said they have acquired United Organic Products LLC of Gonzales, Calif., and the assets including the intellectual property of Waste Recovery Industries LLC of Paso Robles, Calif., making Converted Organics the exclusive owner of the high temperature liquid composting (HTLC) system. “These acquisitions catapult us into a leadership position within the organic fertilizer industry and facilitates our immediate entry into the liquid fertilizer market,” said President Edward Gildea. He described HTLC as microbial digestion technology that will become an integral part of the organic fertilizer business, and said in addition the acquisition provides a strong West Coast agribusiness customer base with established distribution channels. United Organic Products employees will be joining Converted Organics, and its chief executive, Peter Townsley, will become executive vice president and chief technological officer overseeing California operations, as well as product and process improvement and development.

Burrup mulls A$600 M IPO

Sydney-Burrup Fertilizers Ltd. is considering a A$600 million public offering according to the Australian Financial Review. Burrup, while not putting out a press release, did run the AFR story on its website. Burrup, owned by India’s Oswal family, has reportedly appointed UBS as the lead manager on the listing. Burrup owns a A$700 million, 760,000 mt/y ammonia plant on Western Australia’s Burrup Peninsula. The plant was completed in 2006.

Another NH3 project eyed for Peru

Lima-Petroperu and Brazil’s Petrobras are eyeing the construction of a 750,000 mt/y ammonia plant that could cost up to $1 billion, according to the local media. The news came after another gas discovery in the Camisea oil field in southern Peru. CF Industries Holdings Inc. has already lined up the gas for a nitrogen project in the country (GM Archives).

Fertilizer licensing system in works in Indiana

Indianapolis, Ind.-A statewide licensing requirement is in the works for as early as next year for anyone who applies any type of fertilizer to 100 or more acres, according to the Indiana Farm Bureau. The state chemist’s office, which has jurisdiction over fertilizer, told Green Markets that the new rule is in the draft stage and no details are available. “At this point, I would like to not have anything in circulation until there is clear direction as to how we will be proceeding,” Fertilizer Administrator Michael Hancock remarked. “That should be more clear after this legislative session, allowing we are afforded authority to fund the program.” Farm Bureau Staff Attorney Justin Schneider said the bureau has been involved in discussions on the licensing, which he said would be “very much like the pesticide licensing program and would be funded through a fee system.” Schneider said there is a bill awaiting action in the General Assembly that would authorize the fertilizer fees. He said the Farm Bureau supports the concept of having license applicants undergo training and take an examination before receiving certification. At the same time, the entire concept of how the agriculture community is regulated is under review by a 20-member task force in an exercise described by Schneider as looking into “how the rules are made and implemented rather than what the rules say.” Ted McKinney of Dow AgroSciences is chairman and Schneider is vice chairman of the panel, which takes in government, legislative, and industry interests. In addition to Dow AgroSciences, members are included from The Andersons, Premier Ag Co-op, and the nursery and turf business. A crop farmer is also on the panel from Wells County. The final report is required to be submitted to the administration and the legislature by early December. McKinney explained that the first step will be to talk with regulators to try to understand how the system works, adding that “this won’t be easy since there are 13 different ‘agency functions’ that regulate agriculture.”

Management Briefs

Jan Doege has been named president of K+S North America and director of the K+S KALI division, and will assume that position effective April 1, 2008. Mr. Doege is currently working at K+S KALI GmbH, (Kassel, Germany) and is responsible for the North American market in the Overseas Fertilizer Sales department. Mr. Doege will replace Mark Roberts, who will transfer to the Salt Division of the K+S Group and assume the role of CEO for International Salt Co. (Clarks Summit, Penn.) upon the retirement of Robert Jones in October.


ICEC announced that Marta Vilanova has joined the company’s International Marketing group as marketing director-international. Vilanova brings more than 18 years experience in the energy and raw materials field. She will be located in Caracas, Venezuela, and concentrate on ICEC’s Western Hemisphere activities. She can be reached by telephone at +58-424-1797913, and by email at mvilanova@icecglobal.com.


Wayne Donaldson on Feb. 11 will assume duties as account manager for Agrico Canada Ltd./Limitee in Western Canada. Donaldson has 17 years of sales and marketing experience. He will be based in Saskatoon and will be responsible for growing the company’s market in Saskatchewan and Alberta, as well as supporting established customers. He will report to Rick Rempel, vice president for marketing for Western Canada.


Potash One Inc. has announced the appointment of George Lim, CA, CGA, as chief financial officer. Lim has more than 30 years of accounting and financial management experience. Previously, he was CFO of Energy Metals Corp. For 5 years he has also been CFO of a group of resource companies with operations in North and South America, Australia, and Africa. He began his career at KMPG and has since held roles of increasing responsibility, several of which were senior roles in public practice and in the mining industry.


Land O’Lakes Inc. has announced that Dave Seehusen, 61, will become executive vice president, ag business development and member services, a position that did not exist previously. Seehusen has been employed by the company for approximately 40 years, and has served as the executive vice president and chief operating officer of the company’s seed division for the past 23 years.

Mike Vandelogt, 53, will become executive vice president and chief operating officer of Winfield Solutions, seed division, filling the vacancy created by Seehusen’s move. Vandelogt has been with the company for the past 17 years.

Barry Wolfish, 51, is moving from his current position as vice president, corporate strategy and business development, to become senior vice president, corporate marketing strategy, a position that did not exist previously. He has been with LOL eight years.

Jean-Paul Ruiz-Funes, 50, is joining LOL as senior vice president, corporate strategy and business development, filling the vacancy created by Wolfish’s move. He was most recently general manager with Baxter International.


The Scotts Miracle-Gro Co. has announced the recent promotions to senior vice president of Keith Baeder, Fred Bosch, Randy Coleman, and Andy Coogle.

Keith Baeder, senior vice president and general manager, North America Gardens, oversees the Gardens business in North America, which includes plant food and growing media, primarily under the Miracle-Gro brand. He is also responsible for the Scotts wild bird food business. He most recently served as vice president, Gardens Marketing, since 2004.

Fred Bosch, senior vice president, Global Professional, is responsible for the marketing of specialty fertilizers and plant protection products for the commercial horticultural industry, including greenhouses and nurseries, landscape professionals, European turf professionals, and high-value specialty agriculture. Bosch joined Scotts Miracle-Gro in August 2000 as vice president of sales for the International Professional business.

Randy Coleman, senior vice president, North America Finance, manages all financial aspects of the North America business, including responsibility for the company’s North America Consumer brands, Scotts LawnService, and Smith & Hawken. Coleman has been with Scotts for eight years, holding a variety of positions in the finance.

Andy Coogle, senior vice president, assistant general counsel, leads the company’s global legal support activities. Coogle joined ScottsMiracle-Gro in May 2000.


Industry veteran Gary W. Didinger, 74, of Didinger & Son Inc., Danville, Ohio, passed away on Jan. 14. Didinger was a successful businessman for more than 60 years, founding the family fertilizer business with his father while still in high school. Over the years, he and his sons expanded Didinger & Son into a major agriculture crop service facility in southern Ohio. He was also a longtime member of the Ohio Agribusiness Association, and a great friend to many within the industry, including Green Markets. Didinger never retired, spending time at the business even as he battled cancer in the final year of his life. He is survived by his wife, Carol; four children, and five grandchildren. A funeral Mass was held on Jan. 17 at St. Luke Catholic Church in Danville. Memorial contributions can be made to the Pallative Care Unit at Knox Community Hospital, 1330 Coshocton Road, Mount Vernon, Ohio 43050.

Potash Corp earnings top $1.1 B in 2007; 4Q net income the highest in company history

Potash Corp. of Saskatchewan Inc. reported net income of $1.1 billion ($3.40 per diluted share) for the year ending Dec. 31, 2007, up from 2006’s $631.8 million ($1.98 per share). It was the company’s fourth consecutive year of record earnings. Sales for 2007 were $5.234 billion, versus 2006’s $3.766 billion.

Fourth-quarter earnings were the highest in company history, with a 100 percent increase over the year-ago period. They were $376.8 million ($1.16 per share) on sales of $1.431 billion, up from 2006’s $186.0 ($.58 per share) and $1.022 billion, respectively.

PotashCorp expects the first quarter to see net income in the range of $1.30-$1.60 per share, and full year at $6.25-$7.25 per share.

“Our record performance for the quarter and the full year reflect the increasing potential of our company,” said President and CEO Bill Doyle. “For nearly two decades we have carefully assembled and managed our world-class assets with a long-term view. With growing demand and strong market conditions, we have reached new heights in each of the past four years. More important, we are looking ahead and preparing ourselves for expected future growth that we believe will continue to deliver greater value for our customers and investors.”

Doyle told analysts that the company is standing on the threshold of unprecedented growth.

PotashCorp results surged for all three major nutrients, and the company noted that strong demand reduced 2007 year-end inventories for all three. Compared to the previous five-year averages, North American producer inventories were down 26 percent for potash, 17 percent for urea, and 21 percent for DAP. Potash is on allocation in North America through the first half of the year, and prices for both it and phosphates are up considerably.

Doyle is not deterred by the delay in inking a new potash export deal with China, which he now says may come in late March/early April. He said China will likely run out of potash by then and need to buy, adding that demand is so strong that other buyers are glad to get the potash that would normally go to China during the first quarter. “We will not miss a beat,” said Doyle. As a result, any potash to China in 2008 will be prorated depending on when they buy; they will not receive a full year’s amount within a shorter span. He pointed out that fertilizer economics are far different today than in 2006, when China delayed the negotiations well into the year. Worldwide fertilizer demand is up, as are fertilizer and grain prices, and the Russians are no longer railing potash to China. He said other buyers are not going to wait to see what China does – they are going to buy because they need it. Likewise, he says the current potash supply pipeline remains empty, while it was not in 2006.

While noting that other fertilizer companies have been doing well, Doyle told analysts that PotashCorp has assets second to none. He said no company is as profitable as PotashCorp, and added that any one of the competitors would trade for PotashCorp’s assets if given the chance.

Potash Nitrogen Phosphate Consol.
4Q-07 Sales 479.1 463.1 489.2 1,431.4
4Q-07 Gross Margin 256.4 136.7 141.9 535.0
4Q-06 Sales 371.0 317.2 334.7 1,022.9
4Q-06 Gross Margin 183.9 82.1 33.3 299.3
Year-07 Sales 1,797.2 1,799.9 1,637.1 5,234.2
Year-07 Gross Margin 912.3 536.1 432.8 1,881.2
Year-06 Sales 1,227.5 1,284.1 1,255.1 3,766.7
Year-06 Gross Margin 561.1 315.6 125.3 1,002.0

Agriliance deal off table; CHS/LOL to evaluate options

CHS Inc. and Land O’Lakes Inc. have ended their exclusive negotiations for the sale of the remaining assets of Agriliance LLC’s southern retail locations to a group of current and former Agriliance management team members. This, according to a CHS spokesperson last week.

CHS said the two partners continue to evaluate other options for repositioning the assets. CHS and LOL divided up Agriliance in September 2007, with CHS taking the crop nutrition business and LOL the crop protection, leaving the retail operations still to be repositioned or sold, as was the initial plan.

In the meantime, the 50-50 Agriliance joint venture continues to exist and is overseen by Mark Palmquist, CHS executive vice president and chief operating officer, ag business, and Jim Fife, LOL senior vice president. Tim Witcher, region director, Winfield Solutions, LOL’s crop protection business, has been named managing director of the southern retail agronomy business, overseeing day-to-day operations.

As reported last week (GM Jan. 21, p. 12), during the quarter ending Nov. 30, 2007, CHS and LOL each contributed $230 million to Agriliance to support its working capital requirements, primarily for crop nutrient and protection product trade payables that were not assumed by CHS or LOL upon the distribution of those assets to parents. Also reported last week, Agriliance reported a net loss of $23.5 million on sales of $210.6 million for the first quarter ending Nov. 30, 2007. This compares to a year-ago loss of $31.4 million on sales of $670 million.