Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1921-01-12
Farmers Should Get Benefit Of
Decline IN Fertilizer Material.

Farmers Should Get Benefit Of
Decline in Fertilizer Material.
Washington, Dec. 30.-The depart
n,ent Of agriculture has repeatedly
urged the fertilizer trade, in deternl-
ming their prices for the spring sea-
son of 1921, to recognize to the full
est extent the downward trend of
prices of raw materials and to give
.their customers, the farmers of the
United States, every possible price
concession. Their attention has been
called to their insistence during the
war years upon the application of
the replacement principle" in de-
termining their price quotations dur
ing the period of rising prices and to
their abandonment of this theory un-
der changed conditions of falling
market.
The larger manufacturers, after
conference with the department, de-
cided to lower the unit cost of pot
ash and of ammonia in determining
the price of their mixed fertilizers,
(Which had been based on unit costs
of September 25.) In the meantime,
however, the prices of raw materials
have continued to decline with the
result that on November Is, the esti-
mated average purchase price of am
naonia was 81 unit, representing a
decline of 81 unit since September
%. Since November Is, there have
been further substantial reductions
In the prices of raw materials. -.
The larger manufacturers, in de-
termining the prices of their mixed
fertilizers have figured acid phos-
nhate at price which is lower than
4he fall of 1920. The trade journals,
on the other hand show that the price
of SO per cent Florida pebble phos-
phate rock was quoted from $6.S5
per ton in June and $11.50 per ton
in September and that the basis has
been changed from f. o. b. Tampa to
f. o. b. mines, making an additional
difference of about $1.20 per ton.
They also show that the quoted price
of bulk acid phosphate increased
from $3.50 to $40 per ton. The fed
eral trade commission, in its report
on the fertilizer industry, indicates
that the large fertilizer manufactur-
ers have practical control of the phos-
phate situation through the owner
ship of acid phosphate plants and of
mines and factories and through the
existence of longtime contracts of
low prices with ether than their own
mines.
The department has urged the
mine owners, the larger fertilizer
manufacturers and the producers of
acid phosphate to make some conces-
sion to the smaller manufacturer by
lowering the price at which they can
purchase rock and acid phosphate.
They reply that, on account of the
strike in Florida pebble district in
1919 and the car shortage the stocks
OF rock and acid phosphate are so low
that they have difficulty in obtaining
sufficient quantities of these materi-
ais for their own use. Apparently the
greater part of the rock that is mined
above the contract requirements of
the larger concerns is held for export,
and domestic buyer without a long
time contract is compelled to pay
s11 to S12 ton, as against Sc ton,
which is about the average for the
domestic contract rock.
The principal acid phosphate man.
ufacturers stated that their price to
contract purchasers was materially
lower than the quotations in the trade
journals for non-contract or cash
purchases. The stated that practi-
ecally their entire production was
sold under long time contracts, and
that the quotations in the trade jour-
mails were based on resale lots where
money was needed or storage capaci-
ties had been exceeded. 1t is evident,
therefore, that the needs of the larg-
er manufacturers are provided for,
whereas the source of supply of the
smaller manufacturers is seriously
7curtailed, and the prices which the
smaller manufacturers have to pay
are greatly in excess of contract
prices. Within the past two weeks,