# No poop for you: Manure supplies run short as fertilizer prices soar
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-06
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Facing Supply Shortage: U.S. Farmers Turn to Animal Manure
Meta Description: Learn how manure is becoming a valuable resource for U.S. growers amid a global fertilizer shortage. Discover the benefits and challenges in using animal waste
URL: https://financedigest.com/no-poop-for-you-manure-supplies-run-short-as-fertilizer-prices-soarhtml

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By P.J. Huffstutter, Tom Polansek and Bianca Flowers

CHICAGO (Reuters) – For nearly two decades, Abe Sandquist has used every marketing tool he can think of to sell the back end of a cow. Poop, after all, needs to go somewhere. The Midwestern entrepreneur has worked hard to woo farmers on its benefits for their crops.

Now, [facing a global shortage](https://www.financedigest.com/britain-facing-tomatoes-shortage-after-overseas-harvests-disrupted.html "Britain facing tomatoes shortage after overseas harvests disrupted") of commercial fertilizers made worse by Russia’s invasion of Ukraine, more U.S. growers are knocking on his door. Sandquist says they’re clamoring to get their hands on something Old MacDonald would swear by: old-fashioned animal manure.

I wish we had more to sell,” said Sandquist, founder of Natural Fertilizer Services Inc, a nutrient [management firm](https://www.financedigest.com/aon-announces-agreement-to-acquire-risk-management-firm-creating-a-comprehensive-cyber-risk-management-advisory-group.html "Aon announces agreement to acquire risk management firm, creating a comprehensive cyber risk management advisory group") based in the U.S. state of Iowa. “But there’s not enough to meet the demand.”

Some livestock and dairy farmers, including those who previously paid to have their animals’ waste removed, have found a fertile side [business selling](https://www.financedigest.com/reasons-why-you-should-hire-a-business-broker-to-sell-your-business.html "Reasons Why You Should Hire a Business Broker to Sell Your Business") it to grain growers. Equipment firms that make manure spreading equipment known as “honeywagons” are also benefiting.

Not only are more U.S. farmers hunting manure [supplies for this spring planting](https://www.financedigest.com/germanys-uniper-to-restart-coal-fired-power-plant-as-gazprom-halts-supply-to-europe.html "Germany’s Uniper to restart coal-fired power plant as Gazprom halts supply to Europe") season, some cattle feeders that sell waste are sold out through the end of the year, according to industry consultant Allen Kampschnieder.

“Manure is absolutely a hot commodity,” said Kampschnieder, who works for Nebraska-based Nutrient Advisors. “We’ve got waiting lists.”

Sky-high [prices for industrial fertilizer are projected](https://www.financedigest.com/edf-delays-uk-nuclear-project-to-2027-ups-price-by-3-billion-pounds.html "EDF delays UK nuclear project to 2027, ups price by 3 billion pounds") to reduce American farmers’ corn and wheat plantings this spring, according to U.S. government data. That further threatens [global food](https://www.financedigest.com/global-food-makers-retailers-remain-in-crisis-mode.html "Global food makers, retailers remain in crisis mode") supplies as domestic wheat inventories are the lowest in 14 years, and the Russia-Ukraine war is disrupting grain shipments from those key suppliers.

While manure can replace some of the nutrient shortfall, it’s no panacea, agriculture specialists say. There’s not enough supply to swap out all the commercial fertilizer used in the United States. Transporting it is expensive. And prices for animal waste, too, are [rising on strong demand](https://www.financedigest.com/oil-rises-on-prospect-of-opec-supply-cut-demand-growth.html "Oil rises on prospect of OPEC supply cut, demand growth").

It’s also highly regulated by state and federal authorities, in part due to concerns about impacts on water systems.

Manure can cause serious problems if it contaminates nearby streams, lakes and groundwater, said Chris Jones, a research engineer and water quality expert at the University of Iowa.

Livestock farmers say it’s a heavy lift to meet all the [government rules](https://www.financedigest.com/italys-rightist-government-tightens-rules-for-migrant-rescues.html "Italy’s rightist government tightens rules for migrant rescues") and track how manure is applied.

RACE FOR WASTE

Regardless of the drawbacks, demand is booming.

In Wisconsin, three dairy farmers told Reuters they turned down requests to buy their manure sent via text and Twitter messages.

North Carolina-based Phinite, which makes manure-drying systems, [says it’s fielding solicitations from growers as far away](https://www.financedigest.com/heathrow-airport-says-return-to-pre-pandemic-demand-years-away.html "Heathrow Airport says return to pre-pandemic demand years away") as Minnesota, Illinois, Iowa and Indiana.

Smithfield Foods, the world’s largest pork producer, has noticed the shift at the U.S. hog farms that supply its slaughterhouses.

We’re definitely seeing farmers move toward manure with the [increase in fertilizer prices,”](https://www.financedigest.com/syngenta-4q-profit-falls-as-raw-material-prices-increase.html "Syngenta 4Q profit falls as raw material prices increase") said Jim Monroe, a spokesperson for the company, which is owned by Hong Kong-listed WH Group Ltd.

[Industrial fertilizers such as nitrogen require a lot of energy](https://www.financedigest.com/britain-considers-energy-bill-subsidy-for-industrial-firms.html "Britain considers energy bill subsidy for industrial firms") to produce. Prices started to [surge](https://www.financedigest.com/explainer-oil-price-surge-changes-ecb-narrative-only-at-the-margins.html "Explainer-Oil price surge changes ECB narrative only at the margins") last year amid rising demand and lower supply as record natural gas and coal prices triggered output cuts by fertilizer manufacturers. Extreme weather and COVID-19 outbreaks also roiled global [supply chains](https://www.financedigest.com/5-steps-to-successful-supply-chain-finance.html "5 Steps to successful supply chain finance").

War in [Ukraine has made the situation worse by reducing fertilizer exports](https://www.financedigest.com/ukraine-grain-export-coordination-centre-opens-in-istanbul.html "Ukraine grain export coordination centre opens in Istanbul") from Russia and its ally Belarus due to Western sanctions and shipping snags. That threatens to shrink harvests around the world at a time of [record food inflation](https://www.financedigest.com/uk-shop-price-inflation-hits-record-8-in-january-brc.html "UK shop price inflation hits record 8% in January: BRC"). Combined, Russia and Belarus accounted for more than 40% of global exports of potash last year, one of three critical nutrients used to [boost crop](https://www.financedigest.com/crop-merchant-louis-dreyfus-gets-profit-boost-in-volatile-year.html "Crop merchant Louis Dreyfus gets profit boost in volatile year") yields, according to Dutch lender Rabobank.

As of March, commercial fertilizer [prices reached a record](https://www.financedigest.com/tesla-posts-record-quarterly-deliveries-after-price-cuts-up-4-from-q4.html "Tesla posts record quarterly deliveries after price cuts, up 4% from Q4") high, with nitrogen fertilizer jumping four-fold since 2020 and phosphate and potash up three-fold, said London-based consultancy CRU Group.

One person left bereft is Dale Cramer, who grows corn, soybeans and wheat on about 6,000 acres in Cambridge, Nebraska. [Searching for alternatives](https://www.financedigest.com/eu-considers-ban-on-forever-chemicals-urges-search-for-alternatives.html "EU considers ban on ‘forever chemicals’, urges search for alternatives"), he has sniffed around feedlots for manure since last August with no luck.

“A lot of people have put their names in for the same thing,” Cramer said.

HONEYWAGON SCRAMBLE

With demand for manure surging, prices have followed, delivering an unexpected windfall to livestock producers and cattle feedlots.

Prices for good-quality solid manure in Nebraska alone have reached $11 to $14 per ton, up from a typical price of $5 to $8 per ton, consultant Kampschnieder said. A dry winter helped [drive up prices](https://www.financedigest.com/nestle-sales-soar-as-price-rises-drive-growth.html "Nestle sales soar as price rises drive growth") by leaving manure with less water in it, making it more concentrated, and thus more valuable, he said.

Iowa farmer Pat Reisinger is relieved he has dung from the pigs and dairy cows he raises to fertilize the corn, soybeans and hay he grows to feed those animals. He sold a little manure to one neighbor and is getting phone [calls from others in need](https://www.financedigest.com/europe-power-firms-need-1-5-trillion-euros-in-margin-calls-equinor-says.html "Europe power firms need 1.5 trillion euros in margin calls, Equinor says").

If I sold any more, I’d have to [turn around and buy commercial](https://www.financedigest.com/certainty-in-an-uncertain-world-post-brexit-investors-turn-to-commercial-property-and-fixed-returns.html "Certainty in an uncertain world – post-Brexit investors turn to commercial property and fixed returns") fertilizer, which makes no sense,” Reisinger said.

The [boom has also has lifted](https://www.financedigest.com/mercedes-benz-lifts-profit-forecast-as-luxury-cars-boom.html "Mercedes-Benz lifts profit forecast as luxury cars boom") machinery companies that make spreading equipment for solid manure as well as so-called honeywagons: wheeled tanks hitched to trucks and tractors for transporting and applying liquefied waste.

In Canada, Husky Farm Equipment Ltd is sold out of honeywagons. The company built its first contraption back in 1960 as a way to make collecting and spreading manure more efficient, according to President Walter Grose. Today Grose sells directly to farmers and machinery dealerships, and he can’t keep up.

“We have people looking for equipment right away and we’re sold out for six months,” said Grose who sells honeywagons in several sizes. Bigger tanks come with a $70,000 [average price](https://www.financedigest.com/taylor-wimpey-espana-remain-cautiously-optimistic-as-average-selling-price-increases-by-20-4.html "Taylor Wimpey España ‘remain cautiously optimistic’ as average selling price increases by 20.4%") tag.

CNH Industrial, the American-Italian farm and construction equipment giant, said it has seen strong demand for its New Holland brand box spreaders – essentially, a steel box that attaches to a tractor to haul and spread solid manure.

Kansas equipment dealership KanEquip Inc is sold out of New Holland spreaders, even though prices have [jumped](https://www.financedigest.com/stocks-jump-as-treasury-yields-ease-and-oil-prices-sell-off.html "Stocks jump as Treasury yields ease and oil prices sell off") 10% from the normal list price of $30,000, said regional manager Bryndon Meinhardt. He said the dealership has ordered 10 more to meet demand.

NO POOP FOR YOU

Even in states where large livestock herds generate massive quantities of manure, there’s not enough to replace commercial fertilizer completely. Iowa, the top U.S. producer of pork and corn, already applies all of its manure on land covering about 25% of its corn acres each year, said Dan Andersen, an associate professor at Iowa State University who specializes in manure management.

On average, Iowa uses about 14 billion gallons of manure annually, said Andersen, known as @DrManure on Twitter. He [expects Iowa growers may suck out an extra billion](https://www.financedigest.com/factbox-big-banks-expected-to-rack-up-more-than-1-billion-in-fines-for-whatsapp-use.html "Factbox-Big banks expected to rack up more than  billion in fines for WhatsApp use") gallons this year from storage in tanks on farms to substitute pricey commercial fertilizer.

Part of the current supply problem is rooted in the evolution of the U.S. farm economy. As America’s livestock sector has consolidated, there are geographical hubs where animals are raised for eggs, milk or meat, and where the most manure is produced. As a result, some places have too little, while others have too much and have wrestled with ways to dispose of it.

Last October, Pennsylvania dairyman Brett Reinford thought he might be [tight on manure storage space over the winter](https://www.financedigest.com/ceraweek-europe-gas-supplies-to-stay-tight-2-more-winters-equinor-ceo-says.html "CERAWEEK-Europe gas supplies to stay tight 2 more winters, Equinor CEO says"). So he made an offer to local farmers: You come and haul it away, you can have it for free. He got no takers.

Fast forward six months and Reinford is now sitting on liquid gold. “We’re keeping it all and I wish we had more,” he said.

Manure could [become even more precious later this year](https://www.financedigest.com/scottys-little-soldiers-become-incentive-fm-groups-chosen-charity-in-three-year-partnership.html "Scotty’s Little Soldiers Become Incentive FM Group’s Chosen Charity In Three Year Partnership"), as U.S. livestock herds and poultry flocks shrink.

The number of hogs in the United States has dropped to its lowest level in about five years, as producers grapple with swine diseases and [rising costs](https://www.financedigest.com/can-cfos-balance-the-books-with-rising-operating-costs.html "Can CFOs balance the books with rising operating costs?") for feed and other inputs. [Bird flu](https://www.financedigest.com/china-records-worlds-first-human-death-from-h3n8-bird-flu-who.html "China records world’s first human death from H3N8 bird flu -WHO"), meanwhile, has wiped out more than 22 million chickens and turkeys on commercial U.S. farms [since February](https://www.financedigest.com/dollar-heads-for-first-weekly-gain-since-february.html "Dollar heads for first weekly gain since February").

But even hard-hit poultry farmers could have something to use: Their dead birds can be composted and applied as fertilizer, according to the Iowa Department of Agriculture and Land Stewardship.

(Reporting By P.J. Huffstutter and Tom Polansek in Chicago, and Bianca Flowers in Chicago and New York. Additional reporting by Leah Douglas in Washington, D.C.; Editing by Caroline Stauffer and Marla Dickerson)


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