Good morning.
At the Canadian Fertilizer Institute, we believe that farmers should work closely with their agri-retailers well in advance of seeding, to get the best value for their fertilizer dollar. Agri-retailers are the best source of information on the fertilizer market, but they need good, timely information from their farmer customers so that they can plan their purchase of fertilizer supplies.
What can governments do? There are some things governments should consider in order to help farmers in purchasing fertilizer.
Experience shows that waiting till the last minute to buy fertilizer puts supplies at risk and can lead to increased costs. Do farmers have the information they need to make informed decisions about the market? Well, that's a question for government. At the CFI, we have asked the George Morris Centre, an independent economic think tank, to look at some of these issues about the strategies farmers should be considering in purchasing their fertilizer inputs. These go to concepts such as hedging, long-term contracting and pre-purchasing of fertilizer, managing their interest rate risk, and negotiating with the dealers to get the best value they can from their agri-retailers. I think it's essentially the issue that an informed consumer is a smart consumer.
Does the federal spring cash advance program allow farmers to arrange for their fertilizer purchases when they and their suppliers can make the best plans for their overall product and service needs? I think that's an important question that needs to be looked at.
Do the lending programs offered by Farm Credit Canada provide farmers with the flexibility they need to take advantage of opportunities to buy fertilizer well in advance of spring seeding?
I want to echo what David MacKay has said, that the Canadian Association of Agri-Retailers has been asking the federal government to provide 75% funding for the capital costs of new safety and security measures for fertilizer outlets across Canada. Is the government prepared to assist in meeting this security challenge?
I think all these are questions this committee should consider.
Thank you very much. We would welcome your questions.