MENU

Is There Too Much Fertilizer To Go Around?

It’s no surprise that the global demand for food has been on the rise. The populations of developing nations are demanding access to grains and meat as their wealth increases, and environmental regulation forcing the use of corn- or soy-based ethanol in gasoline are adding to the demand already generated by organic population expansion. Recent market prices and inventory levels have prompted farmers to plant significant levels of nutrient-dependent crops around the world. Unfortunately, we are running out of arable land in a fairly rapid fashion compared to the not-so-distant past.

Due to the shrinking amount of land available to farmers, fertilizer’s ability to increase yield has become increasingly important. There are three varieties of fertilizers that the vast majority of growers turn to: nitrogen, phosphate and potash. A small number of companies produce all three, while the rest tend to specialize in one or two. Motley Fool analyst Taylor Muckerman briefly walks through the industry dynamics and his opinions on a few key players in the following video.

Potash and Agrium are two of Canada’s finest businesses.  The Motley Fool’s Special Free Report3 U.S. Companies That Every Canadian Should Own” profiles 3 of the best that our neighbour to the south has to offer.  To download this report at no charge, simply click here.

The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead.

Follow us on Twitter and Facebook for the latest in Foolish investing.

Fool contributors Joel South and Taylor Muckerman have no position in any stocks mentioned at this time.  The Motley Fool owns CF Industries.      

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.