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Natural Gas Crisis

Soaring energy costs and particularly natural gas prices may be an environmental blessing in disguise.

Last February former Saskatchewan premier Grant Devine spoke to about 100 farmers and gardeners at a United Grain Growers (UGG) meeting in Davidson. This is a farmer-owned grain company with grain elevators in the three prairie provinces supplying chemical fertilizer and pesticides to farmer members.

Devine, a director of fertilizer producer Agrium, which supplies UGG with all of its nitrogen fertilizer requirements, described the effect natural gas prices will have.

"Natural gas is a major component of nitrogen fertilizer. Soaring natural gas prices are taking the price sky high," he said. "Current prices for nitrogen fertilizer are about $450 per tonne. That price has doubled since last fall and it will likely go up another $100 to $200 per tonne. Even if farmers can afford fertilizer there might not be any available.

"Agrium has shut down one half of its plants because selling natural gas earns the company more profit than selling fertilizer." Devine predicted, "It’s going to get even worse. We’ll shut them all down."

Devine said Agrium pre-bought its natural gas at a much lower rate than the current market price. The company is cashing in on demand by selling its gas on the world market.

A recent edition of the Western Producer reported that 23 weeds were resistant to herbicides in Canada, 450 in the world. Pests are building up a major resistance to pesticides as well. With all these factors at work, it’s obvious that chemical agriculture as we know it will end soon. Some farmers have pre-ordered their fertilizer so they will be all right for this year, but no one can afford the $650 per tonne they will have to pay for fertilizer with present wheat prices of $3.20 per bushel and $5.50 per bushel of canola. Fortunately, about the only alternative is to go organic.

For several years here in Saskatchewan we have had one agricultural extension worker working part-time on organic agriculture. During the winter, organic farmers and gardeners attending a workshop in Moose Jaw were pleasantly surprised when they were advised by agriculture bureaucrats that there would be 19 agriculture extension people working full-time on organics.

Organic Strategies Work

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Source: alive #223, May 2001

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