Canadian Rail Strike Ends Quickly; Brings Much-Needed Certainty to Fertilizer Supply

What a difference a few days makes. Just last week, we reported in the AIR, that Canadian rail workers were on strike, and the agricultural community was bracing for what effect a lengthy Canadian rail strike might have on the grain and fertilizer supply situation for the U.S.

Fortunately, however, the strike only lasted two days. The Canadian Pacific (CP) Railway, Canada’s second largest rail carrier, and the Teamsters Canada Rail Conference (TCRC) announced late last week that a new agreement had been reached, which ended the strike/lockout.

For U.S. agricultural interests, the end of the CP strike brought some much-needed certainty to the fertilizer marketplace, with Canadian fertilizer now expected to be available for ag retailers and their grower customers to utilize during the spring planting season. Initially, as strike talks were happening, Nutrien interim Chief Executive Ken Seitz said that if the Canadian rail strike lasted for too long, it would “force Nutrien to consider slowing potash production.”

With the Canadian rail strike now settled, Jay Debertin, President/CEO for CHS, Inc., believes the U.S. fertilizer market should be stable for the spring season.

Editor’s Take:

Wonderful news! The last thing farmers/ranchers needed was more constraint on fertilizer and crop protection supplies. The quick settlement should provide some relief and stability to an already overstressed market. Now, pray for good weather and great crops at harvest time….