Fertilizer is often the highest input in a farming operation, especially in grains, oil seeds, and other cropping operations.
In an attempt to maintain ownership and control over the fertilizer market in North America, most manufacturers that were approached by FNA to buy their products refused to sell. When researching the global market on fertilizer sales and cost of production, it was quickly realized that North American farmers were leaving too much money on the negotiating table.
The fertilizer module is designed to create the opportunity for farmers to access unbiased industry information and access to true wholesale pricing through combined volume purchasing. In Canada, FNA achieved up to a CAN$75 per tonne difference in the cost of some granular fertilizers for members.
Although FNA has been able to create enough efficiencies in fuel purchasing to see members access many millions of gallons of farm fuels, there was a need to provide other purchasing alternatives.
The fuel module allows members to avail themselves of several fuel lock-in programs that allow a farmer to fix a low cost on fuel for the whole season.
The module allows FNA to focus on researching future options with experienced staff and passing those benefits back to the membership.
Replacing or upgrading machinery on any farm is costly. This module allows FNA to negotiate on many pieces at the same time. This form of negotiation gives every farmer the power of volume purchasing often through the same dealers or manufactures as they would normally purchase through.
Benefits from this module often bring literally thousands of dollars back to the farmer.
There is no doubt that North America’s pricing on farm chemicals is high when compared to many agricultural communities around the world, despite that most chemicals are manufactured by a handful of companies.
In researching the global market, FNA found that Canada was as much as 50% higher in cost on farm chemicals than competing markets overseas and the United States was over 25% higher cost than Canada.
This module allows farmers the opportunity to lower their farm chemical costs through volume purchasing advantages.
As FNA develops, more and more modules are being set up to provide the same advantages for producers. Livestock, marketing, seed, and finance are also being set up as the demand increases. Each module provides individual members with information essential to make the critical procurement decisions that face producers each season. Although there may be some small variances in the system or added requirements, all of these modules will be available to members in both Canada and the United States.
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