Fertiliser Price Tracker

[farmerm]

Yes I've just seen that 50% bps paymentby the end of July, now we are out of the EU this is allowed.
Kind Regards
Our George

Being as this is actually a good idea it clearly didn't arise from anywhere either inside DEFRA or in government.... Being of a suspicious nature one wonders if the idea was "suggested" by the same people from CF Fertiliser who held the Gov by the balls last Autumn and forced tax payers to fund their Nitrogen production costs so we didn't run out of CO2.... Without BPS money sitting in their accounts and Nitrogen north of £700, far fewer farmers will have the cash flow to fund early Nitrogen deliveries.

 

[farmerm]

I wonder if it was a precondition for CF turning the CO2 back on.

Seems we have similar suspicions about this surprise announcement. What is extra unusual about this is that such things are normally public knowledge weeks before any sniff of an email from the RPA. The first whiff I heard of this was only a few hours before the RPA email and timing wise, slid in quietly under the smoke and noise of todays election results...

 

[curlietailz]

This is kicking the farming cash flow problem down the road
It is a welcome idea as it will ease cash flow and reduce overdraft interest ( negligible but a reduction) and May facilitate buying fert earlier than normal…. But only for those who have adequate long term storage
But
This money is likely to be spent in the July-Nov period, and there will be 50% less ££ in Dec
And many people may find managing their spring 2023 cash flow very very difficult

 

[Renaultman]

I’ve had the same offer. Seller’s option as to which delivery month.

However, it is frustrating when we don’t really want to pay for it until the BPS money arrives in December and they want another £10/tonne to ensure this!
Especially when chances are that it might not arrive until November anyway.

On top of which, presumably this is un-Inhibited Urea, therefore cannot be used after 31st March.

I haven't got to the bottom of the thread and you are probably well aware that half of our BPS is coming in July.

 

[Steevo]

I haven't got to the bottom of the thread and you are probably well aware that half of our BPS is coming in July.

“from the end of July”

That could be November knowing the government so be careful getting into a situation which is depending on that cash arriving early.

 

[bankrupt]

50% of this year's (25% reduced) BPS will be enough to fund only 30% of next year's AN at current prices.

 

[redsloe]

50% of this year's (25% reduced) BPS will be enough to fund only 30% of next year's AN at current prices.

Correct me if I'm wrong but apart from a couple prices for urea, I haven't seen any current prices for AN?

 

[Bramble]

Correct me if I'm wrong but apart from a couple prices for urea, I haven't seen any current prices for AN?

Yesterday I had a price of £740 for AN, not new season. Also some imported granular 33.5% arriving in the summer (so a ’new’ season price) of £687. With BPS arriving early, and the £ weakending, I’m beginning to think AN will be nearer £700 than the £650 I thought a couple of days ago. All IMHO

 

[JCfarmer]

Are we going to buy it all in one lump so to speak or buy it like we sell wheat over different months?
Had a quote for urea yesterday at £745
Tempting but waiting for AN price to come out and see what urea does.

 

[aangus]

50% of this year's (25% reduced) BPS will be enough to fund only 30% of next year's AN at current prices.

If they had announced that they were going to pay Bps at 2021 rate that would of been far more beneficial

 

[Two Tone]

I haven't got to the bottom of the thread and you are probably well aware that half of our BPS is coming in July.

Yes, it will help now.
Sod’s law that this news comes out the day I ordered my Urea.
Nonetheless, this is good news. Cash flow is always it at its worst as Harvest begins, but not this year or it appears from now on.

 

[le bon paysan]

With the news your subs are going to be early, watch the price 'edge' up!

 

[T Hectares]

I’ve had the same offer. Seller’s option as to which delivery month.

However, it is frustrating when we don’t really want to pay for it until the BPS money arrives in December and they want another £10/tonne to ensure this!
Especially when chances are that it might not arrive until November anyway.

On top of which, presumably this is un-Inhibited Urea, therefore cannot be used after 31st March.

Don’t forget that the 31st March untreated Urea spreading decision is postponed until autumn ‘23 ( depending on Defra’s autumn ‘22 review ) so business as usual for spring ‘23

Fwiw I’ve also bought Urea this week but with pay Jan, I had some early bought AN to carry over to help the average down so just the Sulphur side to sort now, I’d like to carry on with Polysulphate but am less enthusiastic about it given the current pricing, I know K prices are rising globally but there’s only 14% in Poly !!

 

[Renaultman]

“from the end of July”

That could be November knowing the government so be careful getting into a situation which is depending on that cash arriving early.

I know, that crossed my mind, when they struggle to process the claims by November, how are they going to be able to do it 6 months earlier? I suspect bit will have to be half of your historical payment with a balancing payment in the winter. I admit I have only read the headlines, not the small print.

 

[jackrussell101]

With the news your subs are going to be early, watch the price 'edge' up!

Exactly my thoughts, just pouring some more petrol on the fire

 

[Old apprentice]

Just like years ago when sfp came out dairy company's said we will have some of that 2p per liter was talked about.

 

[fudge]

Most arable farmers don’t need the subsidy. I cannot really understand why it should affect their buying decisions. Far more relevant is the forward price of grain.

 

[Steevo]

I know, that crossed my mind, when they struggle to process the claims by November, how are they going to be able to do it 6 months earlier? I suspect bit will have to be half of your historical payment with a balancing payment in the winter. I admit I have only read the headlines, not the small print.

....and the cynic in me wonders whether the other half of the payment won't be 1st Dec as previous years but dragged on a few months!

 

[Nitrams]

This is kicking the farming cash flow problem down the road
It is a welcome idea as it will ease cash flow and reduce overdraft interest ( negligible but a reduction) and May facilitate buying fert earlier than normal…. But only for those who have adequate long term storage
But
This money is likely to be spent in the July-Nov period, and there will be 50% less ££ in Dec
And many people may find managing their spring 2023 cash flow very very difficult

Not addressing the fundamentals at all just giving a bit more rope before it goes tight imo, basically the same stategy as developed nations economic model....keep digging boys theres some gold here somewhere

 

[lloyd]

Most arable farmers don’t need the subsidy. I cannot really understand why it should affect their buying decisions. Far more relevant is the forward price of grain.

A fair few farmers sold wheat forward before the present high prices so haven't yet
seen the extra cash .Fast forward 15months and the world could be awash with grain
bringing p*ss poor prices, planted with expensive inputs .
It will be interesting to see how many dedicated cereal farmers dont need subsidy then.