Reuters – U.S. farmers have cut back on using common herbicides, hunted for substitutes to popular fungicides and changed planting plans over persistent shortages of agricultural chemicals that threaten to trim harvests.
Spraying smaller volumes of herbicides and turning to less-effective fungicides increases the risk for weeds and diseases to reduce crop production at a time when global grain supplies are already tight because the Ukraine war is reducing the country’s exports.
Interviews with more than a dozen chemical dealers, manufacturers, farmers and weed specialists showed shortages disrupted U.S. growers’ production strategies and raised their costs.
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Shawn Inman, owner of distributor Spinner Ag Incorporated in Zionsville, Indiana, said supplies are the tightest in his 24-year career.
“This is off the charts,” Inman said. “Everything was delayed, delayed, delayed.”
Shortages further reduce options for farmers battling weeds that developed resistance to glyphosate, the key ingredient in Roundup.
Prices for glyphosate and glufosinate, another widely used herbicide sold under the brand Liberty, jumped more than 50 per cent from last year, dealers said, padding profit at companies like Bayer, BASF and Corteva.
The U.S. Agriculture Department said it heard from farmers and food companies concerned about whether agribusinesses are hiking prices for chemicals, seeds and fertilizer to boost profit, not simply because of supply and demand factors. The agency has launched an inquiry into competition in the sector, and some watchdog groups said it is moving too slowly.
Agrichemical companies blame the COVID-19 pandemic, transportation delays, a lack of workers and extreme weather for shortages. Fertilizer and some seeds are also in short supply globally.
Supply chain stalled
More difficulties are on the horizon, as BASF, which formulates glufosinate, told Reuters the supply situation will not improve significantly next year.
“It’s going to take more time than what our customers, farmers and retailers would have thought,” said Scott Kay, vice-president of U.S. crops for BASF.
Tennessee farmer Jason Birdsong said he abandoned plans to plant soybeans on 100 acres after waiting months to receive Liberty he ordered from Nutrien Ag Solutions. He ultimately received less than half his order for 475 litres (125 gallons) and planted corn on the land instead. Birdsong said he is better able to control weeds in corn.
Nutrien said numerous events stalled the supply chain during the pandemic and the company provided alternate solutions to customers.
Birdsong said he needed Liberty to fight weeds that are resistant to glyphosate in soy fields. He ruled out a third option, a dicamba-based herbicide from Bayer, because of extensive federal restrictions on when and where it can be sprayed.
“With the dicamba technology being so strict, Liberty is the go-to,” Birdsong said.
The herbicide, approved in 2016, faces stricter regulations because it drifts onto neighbouring farms and damages crops other than Bayer soybeans engineered to resist dicamba.
The rise of a rival Corteva soybean variety, Enlist, is further adding to glufosinate demand because the crop can be sprayed with glufosinate, among other chemicals, dealers said.
Shortages of Liberty and other products began last year as distributors used backup supplies to offset supply disruptions in 2021.
Profits climb
For glyphosate, prices reached $50 to $60 per gallon, up from less than $20 in mid-2021, said Inman.
Bayer reported sales of glyphosate-based products were “particularly strong” in the first quarter as prices increased and volumes declined. Overall, its herbicide sales soared 67 per cent from a year earlier to $2.64 billion.
BASF’s agricultural solutions unit posted quarterly sales of $3.5 billion, up 21 per cent from a year earlier. Corteva also sold more than $2 billion worth of crop-protection products, up 23 per cent from a year earlier, as prices rose 11 per cent.
Kay said BASF is seeking to acquire raw materials earlier to avoid future shortages. Bayer said it broadened its supplier base for raw ingredients and added bulk trucks to deliver products more efficiently. Farmers who cannot find glyphosate and glufosinate are switching to alternatives, Corteva said.
The supply limitations have caused practical headaches for growers.
Indiana farmer Denny Bell said he did not receive Liberty in his usual 250-gallon containers. Instead, he spent seven hours emptying 2.5-gallon jugs into a larger vat before spraying.
Reduced use of herbicides this summer could allow weeds to spread, leaving farmers with more to fight for the next two years when weed seeds sprout.
