Posted 8/21/2014 10:08 (#4030147 - in reply to #4029897) Subject: RE: bad farmer I enjoy your posts, but..............
Amherst WI
thekcirp - 8/21/2014 06:49
that "$1 they make" comment needs LOTS of adjustment. They do just fine on their mark ups. 20% would be closer.
You haven't sold much fertilizer have you?
The only time that happens is when fertilizer is bought at a great time and none of the completion bought then. You forgetting about all the times it's bought wrong and it gets sold at break even or a loss to get rid of that inventory.
Fertilizer is very similar to marketing grain. Everyone talks about $8 corn but most people sold it with a $5 or $6 in front of it. Fertilizer is no different.
Typical margin is up to $50 but closer to $20 a ton. If you call a broker they know that so they know they can make $20+ over what they sold it to your local guy for. If you don't buy it from them directly you'll get it from them indirectly in the end.
Buyers group for fertilizer
