Cash Flow May Influence Fall Fertilizer Business

Working capital is being squeezed by low commodity prices. If fertilizer isn’t applied this fall due to a lack of cash, that business will be pushed into the spring. “Our system is developed and built for a normal fall/spring split on its fertilizer applications,” said Josh Linville, vice president of fertilizer, StoneX. “If we start overloading one side too much, like in this case, the spring, now all of a sudden we’ve got logistical issues; now all of a sudden we’ve got application capacity issues: now all of a sudden we’re trying to bid the same machine away from another farm or from another field. It can be a thing that actually helps us during the winter months when things get quiet, but there’s a price to be paid in the springtime.”