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Cody Whitis, Justin Shirley, Joey Gerking, and Zak Peterson traveled to Austin, TX for the seventh annual Student Challenge Exam at the Sports Turf Managers Association (STMA) Meetings. Purdue placed 1st out of 32 teams. The students worked hard to prepare for the competition and were surprised when announced in 1st place. “This motivates us to continue to work hard in order to do well at the GCSAA Show in Orlando, FL” according to 3rd year turf bowl member and President of the Turf Club, Justin Shirley. The STMA is rich with Purdue University tradition as the late Dr. Bill Daniel, long-time Purdue professor and a pioneer in the turf industry, was one of the four founding members. Dr. Daniel is honored each year by an award in his name that honors individuals who have significantly contributed to the sports turf industry through research, teaching and extension.
Teams from various colleges and universities participated in a written exam on sports turf and sports field topics. The two hour competition included the identification of insects, grasses, and weeds and covered mathematics, soil physical properties, plant physiology, and plant growth and development in addition to question on athletic field construction, design and maintenance. At the conference, students were able to take advantage of many activities specifically geared to them including the student challenge exam, workshops and a student network luncheon. The teams would like to acknowledge the support they received this year from the Midwest Regional Turf Foundation (MRTF), Agronomy Department, their advisor Dr. Cale Bigelow and graduate teaching assistants, Tracy Tudor and Jon Trappe. Without Dr. Bigelow, Tracy Tudor, MRTF and the help of the Agronomy Department the students would not be able to compete in the STMA competition. Please commend them on their performance and hard work the next time you see these students.
1st Place team pictured left to right: Chris Calcaterra (STMA President), Cody Whitis, Justin Shirley, Joey Gerking, and Zak Peterson
Tony Feitz, C.J. Coy, John Thackery, and Steve Vonderheide traveled to Austin, TX for the seventh annual Student Challenge Exam at the Sports Turf Managers Association (STMA) Meetings. Purdue placed 8th out of 32 teams. The students worked hard to prepare for the competition and were surprised when Purdue was announced in 1st place. “I was excited to see our other team take 1st place and I am working hard to take this momentum forward to perform well at the GCSAA Show in Orlando, FL” according to 2nd year turf bowl member and Secretary of the Turf Club, C.J. Coy.
8th place team from left to right: John Thackery, Tony Feitz, Steve Vonderheide, C.J. Coy
by Bruce Erickson, Purdue Agricultural Economics
Fertilizer prices are on the upswing again, buoyed by the high prices of agricultural products that have stimulated increased demand. While the general U.S. economy struggles to recover from the financial crisis of 2008, the demand for agricultural products continues in a strong position due to favorable exchange rates, grain usage for biofuels, production concerns related to recent unfavorable weather in key crop growing regions, and a host of other factors. Higher fertilizer prices have put heavy users such as farmers, lawn care companies, and golf course superintendents on the defensive trying to best manage the input costs of their businesses. The following explains some factors that influence fertilizer prices and possible strategies in dealing with high and fluctuating prices.
Prices Influenced by World Markets and Energy Fertilizer prices reached record levels in 2008 just prior to the financial crisis, with the prices of some key fertilizer materials such as anhydrous ammonia and diammonium phosphate exceeding $1000 per ton. Prices retreated in 2009 and 2010, but began increasing again last fall. The price of urea is approximately twice what it was a decade ago (see figure). In the 1980s the United States was a significant nitrogen exporter--now more than 57 percent of nitrogen used in the U.S. is imported (2008 data). Most commercial nitrogen fertilizers originate from a process that uses natural gas to convert the nitrogen gas in the air into a form usable by crops. Natural gas prices in other parts of the world are a fraction of what they are in the United States, so it is often more economical to produce there even considering transportation costs. Trinidad and Tobago, Canada, Russia, and the Middle East are major suppliers to the U.S.
Phosphorus (P) and Potassium (K) fertilizer sources such as DAP (Diammonium phosphate, 18-46-0) and muriate of potash (0-0-60) originate mostly from open or underground mines, with the bulk of production controlled by a handful of companies. The U.S. is the world’s leading supplier/exporter of phosphorus fertilizers, but imports most of its potassium from Canada. Investments in fertilizer mining and manufacturing are often long-term commitments and companies often lack the ability to adjust quickly to short-term market conditions.
Fertilizer Pricing is Complex Fertilizer is not traded on a common exchange like stocks, currencies, or grains, so it can be much more difficult to get a read on prices. In addition, fertilizers are heavy, bulky commodities and their transport involves expense, time, and logistical constraints. Many customers also depend on their suppliers for fertilizer storage and specialized application equipment. So the market is not as fluid as many other inputs—users aren’t as likely to shop around and then just go pick up what they need as they might for chemicals or seeds.
Dealing With High Fertilizer Prices Using the correct form and amount of fertilizer to achieve the desired plant response maximizes efficient input use and keeping costs in check. Fertilizer suppliers may be willing to enter into contractual arrangements with their larger customers that specify a future quantity and price, to help them manage their own price risk as well as that of their customers. In addition, some larger fertilizer users have also built their own bulk storage facilities that allow them to capitalize on seasonal price advantages or other price trends.
For More Information
Illinois Production Costs Report, Illinois Department of Agriculture: http://www.ams.usda.gov/mnreports/gx_gr210.txt
Agricultural Prices, United States Department of Agriculture: http://usda.mannlib.cornell.edu/MannUsda/viewDocumentInfo.do?documentID=1002
Factors Shaping Price and Availability of This Year’s Fertilizer Market, 2008, Purdue Agricultural Economics: http://www.agecon.purdue.edu/news/financial/Fertilizer_Market.pdf
