The AgriPost
February 28, 2025
Tariffs, Politics, and Potash:
The High-Stakes Battle for Global Supply
Matt Simpson, CEO of Brazil Potash said that over the past three years, potash prices have been highly volatile. Normally, it sold for around $300 to $400 per ton, but prices doubled when the U.S. sanctioned Belarus in 2021. Then, when Putin invaded Ukraine, prices skyrocketed from $600 to nearly $1,200 within a year. Submitted photo
By Harry Siemens U.S. fertilizer producers, wholesalers, and retailers are urging the Trump administration to exempt Canadian fertilizer products from upcoming tariffs, as 95% of the potash used by American farmers is imported, with 80% coming from Canada. Global potash prices could rise significantly without an exemption, impacting food costs and availability worldwide. At a time when the agricultural industry faces the
challenge of feeding a growing population, increasing production costs could make farming less efficient and food more expensive. Matt Simpson, CEO of Brazil Potash, brings extensive expertise in the potash market and the broader agricultural supply chain. Simpson sees the U.S. tariffs on Canadian potash significantly impacting global supply chains and prices. “That’s going to be huge,”
he says. “The U.S. consumes about 10.5 million tons of potash annually, making it one of the largest consumers in the world. They import 95% of their supply, with 80% coming from Canada, the rest mostly from Russia and a small amount from Israel.” If the U.S. imposes a 25% tariff on Canadian potash, Simpson warned it will be challenging to replace that supply. “It’s not just a matter of shifting imports—there are real challeng-
es in displacing that tonnage,” he explains. The consequences could ripple through the agricultural sector, driving up costs for farmers and ultimately affecting global food prices. Simpson highlights logistical challenges as a key issue. “A lot of Canadian potash moves through inland rail systems, making it difficult for imported material to reach the U.S. at a reasonable cost. The lack of warehousing and storContinued on Page 2...
Fund to Help Farms Lower Emissions and Build Resilience The Federal Government has announced the expansion of the On-Farm Climate Action Fund (OFCAF), which will provide an additional $300 million to over a dozen organizations in continuation of their efforts to help farmers become more climate resilient over the next three years. Both the Manitoba Association of Watersheds and the Manitoba Métis Federation will be beneficiaries of this fund. By lowering implementation costs for adopting onfarm practices, facilitating the availability of information and agronomic services, and enabling knowledge transfer to producers and agronomists through outreach and training, OFCAF helps remove obstacles to the broader adoption of beneficial management practices. Direct support to farmers falls under these target areas: - Cover Cropping: activities such as fall- or springplanted cover crops (intercropping), and full-season annual or perennial cover crops in a rotation. Planting cover crops, like clover and alfalfa, cover the soil rather than being harvested, in turn adding nutrients that build organic matter, increase water access and, reduce soil erosion. - Nitrogen Management: activities like optimizing nitrogen use by increasing legumes in rotations, and using manure and other fertilizer substitutes can provide lasting benefits to soil, air and water quality. - Rotational Grazing: practices include new fencing and watering systems, and activities to implement low methane pastures. Rotational grazing is the practice of containing and moving livestock through pasture to allow forage plants to recover, deepen their root systems and improve soil health. Organizations will redistribute funding through individual application intakes. Farmers are encouraged to use the On-Farm Climate Action Fund Web Tool for Farmers to determine which organization best serves their geographic area and needs. Since 2022, OFCAF has provided support to over 7,500 farmers on more than 2,400,000 hectares of land, and has trained approximately 3,000 agrologists and 27,000 producers who have attended knowledge exchange and peer-to-peer learning activities.