This is Tim Hammerich of the Ag Information Network with your Farm of the Future Report.
Brazil Potash is developing significantly more mining capacity for potash in the South American country. Brazil is of course a competitor with the U.S. in the global market, so why would this be a good thing for American farmers? Brazil Potash CEO Matt Simpson says the current supply is in very few hands, and geopolitical factors are making prices volatile.
Simpson… “ Potash is a critical mineral. There’s no substitute for it. And what it does is it strengthens the stem of a plant to make it more resilient to stress. So whether that’s big temperature swings, too much water, not enough water, insect bites. So it is really important and these geopolitical events that are completely outside of most of our control have led to crazy volatility and pricing.”
Simpson said events like US sanctions on Belarus and the invasion of Ukraine have been examples of these geopolitical disruptions.
Simpson… “ Farmers, especially in the US, they only have one growing season, generally speaking. So they need to have certainty on the cost of their key inputs. And having a key input like a fertilizer quadruple in price is very problematic. Because it does mean that the farmers will likely not be able to afford as much so if they don’t buy as much then crop yields drop and then global food prices go up.”
Simpson hopes Brazil can join Canada, Belarus and Russia a major sources of potash in the future.
