The midland journal. (Rising Sun, Md.) 1885-1947, 1944-04-07

Rarrou LYNNE farmer but the
~ freight from Cal
gary to the southern seaboard on fer
tilizer ammonium nitrate is between
$16 and $40 ton.
The army ordnance plants began
delivery in quantity in November,
1913. For the first three months
they sold directly to IVA who con-
tracted with Associated Coopera-
tives, Inc, set up by group of
farmers cooperatives, to sell the
nitrogen to fertilizer manufacture
ers at $40 ton. AS of February l,
this year, the army ceased to sell
directly to IVA but now sells to
the Commodity Credit corporation,
which, in turn, sells to the coopera-
tive. The price has been raised to
$50 ton to allow a dollar for freight
equalization.
Clue to Cost
The Tennessee Valley authority
has given one clue as to the cost of
the fertilizer. On November 7, 1913,
at hearings before a subcommittee
of the house committee on appropri-
atoms, table was submitted which
showed that the cost of lined am
monium nitrate manufactured in
IVA plants was 1912, exclusive of
administrative and depreciation
charges.
In another table IVA showed that
it expected to show net cash income
before depreciation of $246, 1000 in fis-
cal 1914 on the production of fer
tilizer and war chemicals despite in
clusion of an expense of 100000 for
research work. Apparently the en-
tire cost Of research is being
charged for budget purposes as a
current expense on all chemical OPP
erations. In 1943 a loss of $612,000
was shown, and loss of 1886, 1000 for
1915 is estimated.
There has been much difficulty in
dealing with the army, which is not
set up to do ordinary commercial
business. It prefers to sell to gov
eminent corporation rather than di-
rectly to commercial concerns. Its
ordnance plants were built in the
emergency to assure ample nitrogen
production for explosives, but the
operating capacity was found to be
far greater than needed-hence nj
trogen has become available for fer
tilizer.
The construction of army ord
nance plants has created problem
in disposal of the plants after the
war. Some in the fertilizer industry
believe that the nitrogen producing
capacity of the country after the war
will be far in excess of requirements
for peacetime industrial purposes
and agriculture, and advocate scrap
ping some of the army nitrogen
plants after the war.
In fact, the newest plant-the cac-
tus ordnance plant near Etten, Tex
as-already has been converted to
production of other products, and the
nitrogen equipment dismantled. Eff
forts are now being made to sell
this nitrogen producing equipment to
Egyptian interests.
It is pointed out that in 1889 indus
try consumed 10000 tons of nitro
gen, while agriculture used 100000
tons-a total of $50, 900 tons.
700, OOO-Ton Capacity
The present capacity of govern
ment is 100000 tons of nitrogen a
year, and the capacity of private
plants amounts to 100000 tons-a to-
tai of 100000 tons year-almost
twice as much as was used before
the war.
But this year some $4,000 tons of
nitrogen will be used in agriculture
alone, and fertilizer use is increas-
ing. Purdue university agronomists
recently calculated that if the state
of Indiana alone were to use as
much nitrogen in fertilizer as it
should, $4,000 tons would be con-
sumed, against the 6,523 tons con-
sumed in 1941. This may seem fam
tastic, but it indicates that there is
a considerable future for the fertiliz-
err industry; and that the 1900, 900
tons of plant capacity in the United
States may not be too great, if farm
ers wake up to the possibilities Of
the most efficient use of fertilizer.
Agronomists also point out that
when the proper use of fertilizer be-
comes more general, farmers who
live near the large markets will pro-
duce more abundantly; and that this
may tend to take part of the market
from those who are further from the
centers of greatest consumption.
Also, as the good land is cultivat-
ed more intensively, the cost OF
farming marginal land will become
increasingly less profitable. This
may mean a more rapid conversion
of marginal lands into pastures and
wood lots, with possible shifting OF
| population in some areas.