Farmers of North America, a farmer business alliance is proposing a new nitrogen plant for Canada. FNA says it has moved from the conceptual stage to full project development, where farmers are getting involved.

FNA announced that a new business in the form of a limited partnership, the FNA Fertilizer Limited Partnership, has been created specifically to provide farmers a mechanism for ownership of a new fertilizer manufacturing facility.

In turn, FNA Fertilizer Limited Partnership has launched a formal project named "ProjectN" (as in Project Nitrogen fertilizer) which will begin raising seed capital immediately.
It had been previously reported that FNA was "pondering" the idea of building a fertilizer plant, but no direct actions to that end have been publicly disclosed until now.

"It needs to be clear that FNA is not talking about getting into the manufacturing business itself," said spokesman Bob Friesen. "Rather, as we have done in the past, we are organizing and providing the catalyst to see a fertilizer plant built. Participation in fertilizer manufacturing will allow farmers to capture more of the value chain."

The ProjectN working group has conducted a review of the sector, analyzed natural gas pricing, plant scale, market demand, competitive supply and other indicators framing the business case for a new development. The results of these preliminary investigations have been positive.

"The business case is compelling," said Friesen. "The real question is if and to what extent farmers want to gain a return on investment to offset the high cost of fertilizer rather than merely paying for it. Whether or not farmers participate, they will pay for new fertilizer plants indirectly as part of the base fertilizer cost." He added that since North America imports nearly seven million mt of fertilizer a year, it is obvious that farmers are paying for all the plants that now exist and the profits they make.

The intention of FNA Fertilizer Limited Partnership (FNA FLP) to connect committed purchase contracts for the products of the fertilizer plant to farmers that will own an equity stake in the plant provides a unique form of stability and risk mitigation to underpin the success of the project, while providing farmers a certainty of supply of a key farm input.

FNA says it has already gauged a high level of interest in its membership. To further solidify and document farmer commitment, today FNA FLP is launching a seed capital raise.

A new website, www.ProjectN.ca, has been created where members and non-members can indicate their interest and sign on to commit to the project. The website will provide core information about the fertilizer industry, the nature of the tasks involved in building a plant and the benefits and commitments members may expect once the plant is built. The earlier farmers commit to the project, the greater the benefits that are expected to accrue from their participation.

Friesen said that if ProjectN receives a strong response through the website and the seed capital raise, FNA & FNA FLP will be in a position to make additional "concrete announcements in a relatively short time frame."

The 20 miners who sought refuge in a safe area at PotashCorp’s Rocanville potash mine in Saskatchewan have been safely evacuated.

The miners moved to a refuge area in the mine after fire broke out on a cable spool at 1:56 a.m. CST on Sept. 25. At the time, there were 29 miners underground and nine were able to make it to the surface. The fire was put out around 1 p.m. CST, and the remaining miners were able to return to the surface on Tuesday evening, about 18 hours after the fire started. There were no injuries.

PotashCorp said the Rocanville mine is likely to resume production sometime on Sept. 26.

The State Trading Corporation (STC) of India failed to get prices matching the ETA offer of $390.97/mt CFR in the urea tender that closed last week. The ETA offer for 25,000-30,000 mt was more than $10/mt off the average price of $402/mt CFR from the rest of the companies offering tons.

Industry sources speculated before the tender closed that STC would try to take as close to 1 million mt as possible and that prices would be in the low $400s/mt CFR. The ETA offer, which was way off the consensus of where the market was, killed any chance of a large purchase.

When the tender closed, STC approached the rest of the offering companies asking them to match a schedule of prices for different ports based on the ETA offer. Even though the initial response from most of the companies was to reject the bid, STC waited until today to close the door on its counter bid.

India is still about 3 million mt short of urea for its urea needs this year. Another tender will most likely be called soon.

The J. R. Simplot Company has purchased Florikote, a patented polymer-coated fertilizer technology, from Florida-based Florikan, a wholly owned and independent family business that brought the technology to market in 2008. The two companies will jointly promote and distribute this new controlled-release fertilizer in the worldwide turf, ornamental, and specialty agriculture markets.

According to Florikan, which invented the technology with assistance from the NASA-funded Space Alliance Technology Outreach Program, Florikote utilizes next-generation polymers and manufacturing processes that enable the encapsulation of unique fertilizer materials that previously have not been available commercially. Florikan said the Florikote technology has experienced more than 50 percent year-over-year growth in production volume since its introduction in 2008.

"Florikote is an innovative new technology that will enhance our controlled release product line as we further leverage our BEST and APEX brands within our Turf & Horticulture business," said Jeff Roesler, Simplot vice president of supply and specialty business units. "We will begin integrating the technology into existing production and distribution facilities to expeditiously bring it to customers while establishing the brand in new markets over the long term."

Florikan, which is headquartered in Sarasota and has been in operation since 1981, will continue to operate as an independent business and will manufacture Florikote under a licensing arrangement. Simplot, headquartered in Boise, Idaho, will market the technology exclusively to customers in the western U.S and internationally, while Florikan will exclusively market Florikote in its core horticultural markets in the eastern U. S. and all markets in Florida.

“The partnership with Simplot enables the Florikote technology to impact broader markets while providing Florikan with the resources to expand its business and meet the growing demand of its customer base,” said Jon Rosenthal, a principal with Florikan. “We feel that Simplot, with its deep expertise in controlled release fertilizers, is an ideal partner to support our mission in improving the efficiency of fertilization.”

Simplot AgriBusiness Group president Garrett Lofto said the new technology represents a key breakthrough in nutrient stewardship. "We feel this advanced technology has applications throughout many of our market segments, and we are excited about our newly formed association with Florikan," Lofto said. "Offering controlled release fertilizers supports Simplot’s sustainability initiatives as these technologies fit well with the principles of 4R Nutrient Stewardship."

A fire at the Rocanville potash mine is out and the twenty miners still underground in a refuge are safe, according to PotashCorp. The fire was put out around 1 p.m. CST. The miners will be able to leave their refuge in the afternoon after debris is removed. The fire started at 1:56 a.m. CST when a cable spool caught on fire. At the time, there were 29 miners underground and nine were able to make it to the surface, while the others made it to a refuge.

The J. R. Simplot Co. has purchased the patented Florikote technology from Florikan, a specialist in polymer-coated fertilizer technologies. The two companies will jointly promote and distribute this new controlled-release fertilizer in the worldwide turf, ornamental, and specialty agriculture markets.

The technology is a recently developed and patented polymer-coated fertilizer invented by Florikan with assistance from the NASA-funded Space Alliance Technology Outreach Program. Florikote utilizes next-generation polymers and manufacturing processes that enable the encapsulation of unique fertilizer materials that previously have not been available commercially.

Simplot said the purchase and collaboration reinforces Simplot’s position as a market leader of controlled release fertilizers while providing Florikan with the opportunity to realize the full market potential of the Florikote technology through access via an accompanying license arrangement.

“Florikote is an innovative new technology that will enhance our controlled release product line as we further leverage our BEST and APEX brands within our Turf & Horticulture business,” said Jeff Roesler, Simplot’s vice president of supply and specialty business units. “We will begin integrating the technology into existing production and distribution facilities to expeditiously bring it to customers while establishing the brand in new markets over the long term.”

Simplot AgriBusiness Group president Garrett Lofto said the new technology represents a key breakthrough in nutrient stewardship. “We feel this advanced technology has applications throughout many of our market segments, and we are excited about our newly formed association with Florikan,” he said. “Offering controlled release fertilizers supports Simplot’s sustainability initiatives as these technologies fit well with the principles of 4R Nutrient Stewardship.”

According to Jon Rosenthal, a principal at Florikan, the association between the two companies is good for both organizations. “The partnership with Simplot enables the Florikote technology to impact broader markets while providing Florikan with the resources to expand its business and meet the growing demand of its customer base,” he said. “We feel that Simplot, with its deep expertise in controlled release fertilizers, is an ideal partner to support our mission in improving the efficiency of fertilization.”

Simplot will market the technology exclusively to customers in the western U.S and internationally, while Florikan will exclusively market Florikote in its core horticultural markets in the eastern U. S. and all markets in Florida. Together, the companies will make Florikote available to all markets coast-to-coast and worldwide.

With 40 employees, Florikan, a privately-held company based in Sarasota, Fla., is a leading supplier of controlled release fertilizers for the specialty agricultural, ornamental and turf sectors in the eastern United States.

Simplot, a privately held agribusiness firm headquartered in Boise, Idaho, has an integrated portfolio that includes phosphate mining, fertilizer manufacturing, farming, ranching and cattle production, food processing, food brands, and other enterprises related to agriculture. Simplot’s major operations are located in the U.S., Canada, Mexico, Australia, New Zealand and China, with products marketed in more than 40 countries worldwide.

DynAgra Corp., an independent ag retailer headquartered in Western Canada, and CHS Inc., St. Paul, Minn., will combine agricultural services to producers and consumers within the Alberta Province trade territory now served by DynAgra. Effective in September 2012, this marks the first Canadian-based company to join the Country Operations division of CHS. The agreement will be finalized in late September after appropriate due diligence is complete.

"The flood gates of possibilities — new products, new markets and new perspectives — have opened for us by joining CHS," said Tasha Schmaltz, general manager, DynAgra. "To have a company enter the Canadian market that is as focused on the customer’s success as we are is extremely exciting for the DynAgra staff and for our loyal customers. I can only imagine what we will bring next to the marketplace."

"In our research to take DynAgra and our customers to the next level, we decided that a global company was needed to propel our customers into international markets," added Bruce Schmaltz, President and CEO, DynAgra. "After substantial analysis, we decided CHS had what it takes to open up world markets for our customers while bringing a competitive presence to the retail crop input market. We’re confident our long-time customers will find CHS a formidable new player at a time of shrinking competitive choice in Canada."

"The combination is a good match for both companies," explained John McEnroe, executive vice president CHS. "Part of our commitment to helping our farmer-owners grow their businesses included expanding our reach geographically, and Canada provides the opportunities to do just that. CHS continues to look for other opportunities to grow its ag retail business, both in Canada and in the US, to complement our overall enterprise."

Customers of DynAgra should expect a smooth transition, including continuity of staffing at all its locations; Tasha Schmaltz will continue his leadership role as general manager. The business will operate under the name CHS DynAgra through CHS Country Operations Canada, Inc., a wholly owned subsidiary of CHS Inc. This subsidiary will be managed and operated out of the Country Operations division of CHS Inc.

With more than 30 years in the agriculture retail business, DynAgra offers innovative solutions that meet both the economic and agronomic needs of today’s farmers. Under the promise, Powered by Service, DynAgra offers crop nutrition and protection programs, as well as seed and producer financing, at locations in Beiseker, Carseland, Rolling Hills and Standard.

Uralkali reports that it has signed settlement agreements to exit the U.S. potash antitrust case. The agreements were signed with direct and indirect plaintiffs for US$10 million and $2.75 million respectively and shall come into effect after final approval of the U.S. District Court for the Northern District of Illinois.

In September 2008 potash consumers brought civil antitrust complaints in the federal court against Uralkali and BPC, as well as certain other potash producers, including Belaruskali, Potash Corp. of Saskatchewan Inc., The Mosaic Co., Agrium Inc. and Silvinit. The complaints alleged price fixing violations of the U.S. Sherman Act since July 1, 2003.

Under the settlement agreements, Uralkali said it would be released from any liability in connection with the plaintiffs’ claims. BPC as a defendant would be also released as well as other Uralkali and Silvinit traders – IPC and Uralkali Trading SA. Uralkali did not admit any liability in the settlement agreements. It said it believes these settlements are in the best interest of the Company to avoid the burdens, costs and distraction of protracted litigation.