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WC MN | Supply and demand. They have it, you need it. They being a few suppliers. Simple as that. Just because the raw product to make it is cheap doesn't mean they are going to cut you any slack.
If you didn't want to use Anhydrous what is your alternative? Urea? Well, that costs a lot to truck/rail in too.
In the total scheme of things while it's overpriced, anhydrous at today's prices isn't "bad" in relative terms. Look at land rent as a percentage increase compared to N. NH3 was $450 when we started on our own or an increase of roughly $35/acre. Land rent has almost tripled.
Anyways, we will still pay it as long as it cash flows and "they" know that. | |
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