Professional Documents
Culture Documents
STATE OF THE
FERTILIZER
INDUSTRY
REPORT
2016 STATE OF THE FERTILIZER INDUSTRY REPORT
TABLE OF CONTENTS
NITROGEN
• FERTILIZER TRANSPORTATION 40
• FERTILIZER ON THE FARM 46
Agronomic Professionals 48
Nutrient Stewardship Partnerships 52
Enhanced Efficiency Fertilizers 56
• FOOTNOTES 58
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DISTRIBUTION
FERTILIZER RETAIL
VALUE CHAIN
MANUFACTURING
TRANSPORTATION
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
A LETTER FROM
THE PRESIDENT
I am pleased to introduce The Fertilizer Institute’s (TFI) second State of the Industry
Report. This publication and its corresponding digital version track industry performance
on environmental, economic, and social indicators. Only by measuring and evaluating our
efforts can we identify areas we can target for improvement.
The future depends on our ability to provide goods and services that help growers feed the
world, improve lives, and protect the environment. In short, sustainable growth requires
the fertilizer industry to balance economic performance with environmental and social
responsibilities. I hope that this report helps you understand the significant steps the
fertilizer industry is taking to make positive contributions to the environment, the economy,
and society.
Sincerely,
Chris Jahn
President of The Fertilizer Institute
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HIGHLIGHTS FROM THIS REPORT
• The safety of our employees, first • Professionalism is at the heart of all
responders, and local communities that we do, and by employing certified
is our highest priority. In 2015, we crop advisors, we are guiding farmers
dedicated in excess of 2,600 hours to to make sustainable choices and use
training emergency responders and 4R Nutrient Stewardship with their
maintained our support for safety and fertilizer use.
security at the retail level through our
support of ResponsibleAg. • Farmer profitability and natural
resource welfare rely highly upon
• More evidence showing the importance year-round efficiency in rail, barge,
of safety is how we compare to similar pipeline, and truck transportation.
industries. In 2015, the fertilizer The important role that transportation
industry experienced fewer than one- of fertilizer by rail plays is clear
half the safety incidents of our peers when distance and number of tons
in the chemical manufacturing and transported is factored in our report
merchant wholesaler industries. data. On a ton-mile basis, 44 percent of
all fertilizer moves by rail.
• In 2015, the U.S. fertilizer industry
invested $5.1 billion in capital • Fertilizer production can have a
infrastructure projects. These significant physical footprint. Land
investments create jobs, increase reclamation is a high priority to the
worker and community safety, and help industry, and in 2015, the equivalent
conserve energy, land, water, and air of 4,200 football fields of land was
resources. reclaimed or restored.
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
ABOUT THE
FERTILIZER
INDUSTRY
Fertilizer is a key ingredient continues to grow, farmers around growing season. Three primary
in feeding a growing global the world will continue to rely on nutrients are necessary for plant
population, which is expected to fertilizer to increase production growth: nitrogen, phosphorus, and
surpass 9.5 billion people by 2050. efficiency to produce more food potassium. All must be present in
Half of all food grown around the while optimizing inputs. soil in the right amount to grow
world today, for both people and Fertilizers play an essential role healthy crops.
animals, is made possible through in replenishing nutrients in the
the use of fertilizer. As demand soil that are used by plants each
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NITROGEN IS ESSENTIAL IN THE PHOSPHORUS IS INVOLVED IN MANY POTASSIUM, ALSO KNOWN AS POTASH,
FORMATION OF PROTEIN, WHICH PROCESSES CRITICAL TO PLANT IS ESSENTIAL FOR CARBOHYDRATE
MAKES UP MUCH OF THE TISSUE DEVELOPMENT. KEY AMONG THEM AND STARCH SYNTHESIS, AND IT ALSO
PRESENT IN LIVING THINGS. IS PHOTOSYNTHESIS, THE PROCESS HELPS PLANTS RESIST WILTING.
THAT PLANTS USE WHEN CONVERTING
The earth’s atmosphere is about 78 percent Up to 98 percent of potassium in the soil is
SUNLIGHT TO ENERGY.
nitrogen by volume; however, most plants unavailable to plants in its existing form,
can’t get their nitrogen directly from the The phosphorus in most commercial making potash fertilizer essential for crop
air and require nitrogen fertilizer. fertilizers comes from phosphate production. Potassium, like nitrogen, also
rock found in fossil remains originally helps plants produce protein as they grow.
Nitrogen fertilizer is made by capturing
laid down beneath ancient sea beds. Potassium, like phosphate, is mined from
nitrogen from the air and combining it
Fertilizer manufacturers mine deposits of mineral deposits.
with hydrogen derived from natural gas.
phosphate rock, which are converted into
This production method is called the
phosphate fertilizers.
Haber-Bosch process.
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
WHO IS INVOLVED?
The fertilizer industry is made up of companies who represent the entire
supply chain from production to distribution to retail, all working together to
deliver fertilizer to farmers in a safe, timely, and sustainable manner.
The safety of employees and the communities located near fertilizer
production and retail facilities is a top concern for the industry. ResponsibleAg
serves the industry as a resource for retail agribusinesses working to comply
with federal environment, health, safety, and security regulations.
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
INTRODUCTION
ERM, a third party sustainability to report 2013 to 2014 data. produced in, imported to, or
services consultant, conducted transported within the United
This report1 accounts for 93
a quantitative and qualitative States) in 2015.
percent of total fertilizer
data collection program on
nutrient production capacity in TFI considers the following
behalf of TFI to understand more
the United States and expanded operations to be within the report
fully the economic, social, and
representation of industry boundary: fertilizer manufacturing
environmental impacts of the U.S.
wholesale and retail sectors2. sites; crop nutrient wholesalers;
fertilizer industry. The project
All quantitative metrics data in agricultural retail facilities,
built on the lessons learned from
this year’s report represent TFI including but not limited to,
the pilot data collection project
members’ products (nitrogen, blending facilities; and specialty
conducted in 2015, which was used
phosphate, and potash materials crop nutrient providers.
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PARTICIPATING COMPANIES
Building on the pilot report, 20 companies participated by providing data confidentially to ERM. To protect an individual company’s private
data, totals are only provided if three or more companies submitted data for a particular metric. The number of companies providing data
for a particular metric is disclosed within each section in the report.
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
PEOPLE &
COMMUNITIES
The U.S. fertilizer industry is one fertilizer industry generates more
of the world’s largest. The United than $139 billion in economic benefit
States is the fourth-largest producer and provides more than 80,000 direct
of nitrogen-based fertilizers in jobs and 370,000 indirect jobs for a
the world and the second largest total of more than 450,000 U.S. jobs4.
producer of phosphate3. The U.S.
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
CAPITAL INVESTMENTS
In 2015, 14 participating companies communities. What’s more, investments
$5.12 B
made $5.12 billion in capital investments. that improve infrastructure often have
Whether purchasing equipment, building positive impacts on safety, environmental,
Invested in 2015
a new plant, or improving an existing and energy performance.
facility, these investments do more than
help companies operate. Each dollar
spent strengthens the U.S. economy and
the financial well-being of individual
$3.48 B
Invested in 2014
$1.99 B
Invested in 2013
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The trend toward globally competitive U.S. Ammonium nitrate still produces superior plant, new ammonia storage and shipping
energy prices has enabled the nitrogen nutrient value for many agricultural facilities, a 1,100 ton per day nitric acid
fertilizer industry to reverse a decades applications, and LSB is committed to being plant, acid concentrator, boiler house and
old decline in domestic manufacturing a reliable ammonium nitrate supplier to the electricity co-generating facilities, and new
capacity. LSB Industries, Inc., (LSB) used this agricultural and industrial markets. Over particulate controls and warehouses for
opportunity to upgrade facilities and expand the past four years, LSB has invested more both agricultural and industrial ammonium
manufacturing capacity for products sold than $800 million dollars in capital projects nitrate prill manufacturing and storage.
into agricultural and industrial markets. All at its facility in El Dorado, Arkansas. The These investments are helping the U.S.
three of LSB’s main manufacturing sites are expansion includes upgraded facilities and fertilizer industry remain successful in an
now fully integrated to produce nitrogen infrastructure with the latest environmental increasingly competitive global fertilizer
fertilizer and other products from natural control technologies, including a modernized market.
gas. 1,150 ton per day anhydrous ammonia
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
TRADEMARK NITROGEN
TAMPA, FLORIDA
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New Century FS, a retail division of inside loading scale takes precision a step Safety is a priority for GROWMARK, and the
GROWMARK, expanded its facilities in further and facilitates the fast loading of up Melbourne facility has several new features
Melbourne, Iowa, which serves six of the to 200 tons of product per hour. that highlight this priority. The anhydrous
nine counties in which New Century FS Scott Schmidt, a customer from the Grinnell loading station features a safety shut off
does business. The new facility increases area, thought the new fertilizer plant’s system capable of being remotely triggered.
customer service and safety. capacity and accurate measurements were Additionally, the ag chemical blending
The new site features a dry fertilizer shed the most impressive parts of the facility. building, with its drive-through loading,
with a total storage capacity of 11,500 tons, “Its size, volume, and technology mean is designed to protect the environment.
accommodating eight products. The state- these guys can deliver exactly what they The buildings, including the new shop and
of-the-art blending capabilities assure recommend for my fields and do it safely warehouse, also feature safety curbs that can
growers get exactly what they ordered, and accurately. My job is to put it into the contain any spills.
underscoring how New Century FS is helping ground. Theirs is to tell me exactly what I
farmers carefully manage their inputs. The need,” he said.
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
COMMUNITY SAFETY
The fertilizer industry is committed to emergency responders may be called
safety at and beyond the confines of upon to assist. For this reason, fertilizer
its facilities and distribution networks. companies regularly conduct emergency
Companies in the industry actively preparedness exercises to educate and
promote safety in the communities train first responders and others about
in which they operate. In the unlikely potential incidents, prevention, and
event that an accident occurs, local mitigation measures.
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Dakota Gasification Company has public improvement program established by the safety and wellness plans. Dakota Gas has
and employee safety as its number one American Chemistry Council. Dakota Gas held a number of external training events,
priority, as evidenced by its inclusion in became recertified after completing an including tank car training for customers,
all of their mission and vision statements. extensive external audit, which looked at vendors, competitors, and industry
Every year the company re-evaluates its the company’s production, maintenance, stakeholders. The company also provides
everyday working practices and encourages and loading practices, as well as other plant truck load-out training for new and current
its employees, vendors, customers, and areas. trucking personnel in the anhydrous
community members to make safety ammonia load-out station. This reaffirms
Dakota Gas also added new emergency and
suggestions. In 2015, the company that trucking personnel, employees, and the
first-responder equipment on the plant site
continued this commitment to safety communities surrounding the facility are
this year. The company continually trains
through participation in Responsible Care®, more knowledgeable about safety, resulting
employees and works with surrounding
which is a voluntary safety and security in reducing or eliminating incidents.
community stakeholders on emergency
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
CALAMCO
STOCKTON, CALIFORNIA
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CF Industries maintains an unwavering that enhance safety practices. The award Facility in Washington state for its enhanced
commitment to “Do It Right,” which honors Stephen R. Wilson’s commitment to ammonia rail rack protection system. The
advances the highest safety standards, excellence in safety during his more than fall protection system that Ritzville designed
strengthens the business and enables 20 years of service to CF Industries and and implemented first arrests a fall, and
employees to thrive. In 2015, CF Industries helps cultivate a workplace where everyone then slowly lowers the person to the ground,
created the Stephen R. Wilson Excellence in is engaged, empowered, and continuously thereby eliminating the need for assisted
Safety Award to recognize a CF site that best improving safety. The inaugural 2015 rescue. This innovative system avoids the
embodies the company’s culture of safety Stephen R. Wilson Excellence in Safety potentially fatal effects of being held upright
excellence by implementing innovative ideas Award went to CF’s Ritzville Distribution in a harness without any movement.
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
From global entities to small and medium Participating facilities receive KNOWLEDGEABLE AUDITORS
sized retail businesses, the fertilizer an assessment by a credentialed ARE THE CORNERSTONE OF THE
industry consists of companies of all ResponsibleAg auditor once every three RESPONSIBLEAG INITIATIVE. IN
sizes. Although regulatory compliance years. Up to 17 areas (dry fertilizer,
ORDER TO ASSURE EXCELLENCE
can be time-consuming and complex for liquid fertilizer, anhydrous ammonia,
AND CONSISTENCY, ALL AUDITORS
small businesses, the fertilizer industry is shop, office, and grounds, for example)
ARE REQUIRED TO SUCCESSFULLY
united in its commitment to ensure that of a facility are assessed by the auditor.
COMPLETE A RIGOROUS
safety and security throughout the value Education is a key component of
RESPONSIBLEAG TRAINING COURSE.
chain are top priorities. ResponsibleAg’s mission. If the auditor
identifies compliance issues, the
Following the 2013 explosion at a small
facility will receive a corrective action
fertilizer retailer in West, Texas, TFI and
plan, information on how to correct
the Agricultural Retailers Association
outstanding issues, and a recommended
formed ResponsibleAg to help all retailers
timeframe for action. Certification may
assess and address safety and security
not be obtained until all outstanding
issues. ResponsibleAg operates as an
issues are addressed.
independent certifying organization that
provides retail agribusinesses a federal
regulatory compliance assessment and
educational resources related to the safe
storage and handling of fertilizers.
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2,260 Facilities,
resulting in
1,330 Audits,
of which
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
Manufacturing Manufacturing
Recordable Rate Lost-time incident Rate
1.2
2015 National
data, which is then aggregated into nationwide National Average
Average
safety statistics by sector. The employee safety
graphics show how the 13 fertilizer companies
participating in this metric are performing .35 Industry
Average .92 Industry
Average
more safely than their sector’s national Lost-time Incident Rate Recordable Rate
1.2 Industry
Average 1.5 Industry
Average
Lost-time Incident Rate Recordable Rate
2013
RECORDABLE RATE
The number of employees per 100 full-time
employees involved in a recordable injury or illness. 1.5 1 .5 0 .5 1 1.5 2 2.5
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A fresh set of eyes is always valuable, and Small teams observe their colleagues as The audits are a blend of investigation,
POTASHCORP
PotashCorp is using that theory AURORA,
in its newNORTH CAROLINA
they complete common tasks, paying conversation, and observation. “We’re not
safety initiative, “SIF in the Routine.” special attention to when their gut looking to find fault. Sometimes people
A fresh set of eyes is always valuable, and Small teams
feelings tell observe
them thattheir colleagues
something may asnot develop
The audits
moreare a blendways
efficient of investigation,
to do a task,
The goal is
PotashCorp is using
to discover when workers
that theory in its new are they complete common tasks, paying special conversation, and observation. “We’re not
be right. and they’re still being safe and that’s
unintentionally putting themselves
safety initiative, “SIF in the Routine.” at attention to when their gut feelings tell looking to find fault. Sometimes
great,” explained Bubnick. “In otherpeople
cases,
risk of a serious injury or fatality (SIF) as them “We’rethat
looking for those moments
something may not be right. when develop
maybe we more efficient
need to ways
redesign thetosystem
do a task,
in
Thethey
goalperform
is to discover
routine when
jobs.workers
“We want areto the person observing the work begins to and they’re
which people still being safe
are required toand that’s
work, great,”
instead
unintentionally
find potentialputting
dangersthemselves at risk
that exist in our “We’re looking
feel uneasy for those
about moments
the task,” when the
said Bubnick. explained Bubnick. “In other
of just asking them to work safer.” cases, maybe
of aeveryday
serious injury
tasks, or fatality
before they(SIF)
canas they
lead to person
“That’sobserving thewe
our cue that work
needbegins to afeel
to look little we need to redesign the system in which
perform
harm,”routine
said Rob jobs. “We want
Bubnick, to find
PotashCorp’s uneasy
deeper about
at howthe
thetask,”
worksaid Bubnick.
is being done.“That’s people are required to work, instead of just
potential dangers of
Vice President that exist Health,
Safety, in our everyday
and our cue familiar
People that we need to look
with the taskawon’t
little deeper
see at
asking them to work safer.”
tasks, before they can lead to harm,” said
Environment. how the exposure
the SIF work is being done.way
the same People familiar
the person
Rob Bubnick, PotashCorp’s Vice President of with withthe taskset
a fresh won’t see the
of eyes SIF exposure the
will.”
Safety, Health, and Environment. way a person with a fresh set of eyes will.”
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
ENVIRONMENT
& ENERGY
From raw material mining, and production processes in the
to fertilizer production, industry are the most resource-
transportation, distribution, intensive, this section of the report
and retail, TFI’s membership focuses primarily on companies
spans the fertilizer industry operating in these parts of the
value chain. Because the mining value chain.
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
WATER
Responsible water use is fundamental to benchmarks for continuous improvement. liquid discharge to surface or ground
sustainability efforts and conservation. In this report, TFI gathered water-related water, other than stormwater drainage.
Water is a significant resource in the data from member companies based on These facilities are beneficial because
production of phosphate and potash, and volume (in gallons) of water purchased they avoid adding any pollution load
to a lesser extent for nitrogen fertilizers. and water withdrawn from wells and to waterways, except for runoff from
Because some fertilizer operation’s surface water. Volume of collected precipitation.
processes are water intensive, many rainwater, reclaimed water, and reused or Nine companies reported water data
industry members have established water recycled water are of interest; however, for 2015, compared to seven companies
efficiency and zero discharge targets to fewer than three companies reported who reported in the pilot report. The
be achieved through water conservation preventing inclusion in this report. manufacturing companies that provided
and reuse or recycling within their Three TFI member companies reported data for 2015 account for 52 percent of
operations. that, collectively, they have 56 zero- nitrogen and 84 percent of phosphate
By quantifying industry water usage, discharge facilities in their retail and and potash fertilizer nutrient production
we can assess the magnitude and usage distribution operations. A zero-discharge capacity in the United States2.
per-ton of water consumed to provide facility is defined as having no direct
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
NITROGEN PRODUCERS
Water use efficiency for nitrogen production increased among the reporting member companies. Total water use over the three-year period
declined, considering the six companies that reported data for all three years. On a normalized basis, all seven companies were included
across the three-year period. The water use per nutrient ton declined by 18.6% from 2013 to 2015.
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LAND RECLAMATION
Fertilizer production can have a significant physical footprint,
especially in the mining sector. However, every surface acre mined is
reclaimed, restoring such lands for productive uses for both wildlife
and people. The land use metric is aimed at capturing how many
acres of habitat or wetland the fertilizer industry has reclaimed or
improved. This metric, while primarily focused on mine reclamation,
is applicable to any fertilizer producer that has disturbed and/or
reclaimed land around their facilities.
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
Environmental stewardship and reclamation located at the foot of the Ashley National Division of Wildlife Resources to manage
play a key role in every aspect of the J.R. Forest in Uintah County, Utah, as it has dense growth of juniper and pinion pines,
Simplot Company’s phosphate mining returned more than 2,000 acres of land to its thus establishing an ideal habitat for the
operations. Throughout each phase of every original state. region’s elk and sage grouse populations.
project, the company focuses on how to Employees took care to minimize Whether it’s conducting a tour for Utah high
best reclaim disturbed lands after mining environmental impact while saving native school agriculture teachers or supporting
activities have ceased. topsoil for use during reclamation efforts. an Eagle Scout with his mining and society
“Our ultimate goal is to leave the land in Once mining concluded, the company badge, John Spencer and Simplot’s crew
as good or better condition than the way regraded and contoured disturbed areas never hesitate to share the benefits of their
we found it,” said John Spencer, Simplot to match the existing landscape, while reclamation efforts with the community.
Environmental Manager. controlling erosion and managing storm For their dedication to the land, the State of
Restoration has been a key consideration of water. The topsoil was returned and Utah recognized the J.R. Simplot Company as
the company’s work at its mining operation seeded with native grasses and shrubs. the 2015 Earth Day award recipient.
The reclamation team worked with Utah’s
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
ENERGY
Energy is a necessary component in the types of energy used in the industry,
process of creating fertilizer products. participating companies provided data
The energy metric in this report aims for direct and indirect energy use. Direct
to capture energy consumption, energy energy use was reported either as total
intensity, and innovative or low-impact fossil fuel consumption or as a breakdown
energy sourcing to provide a benchmark of the individual fuels used (diesel,
for continuous improvement. Facility propane, fuel oil, natural gas). For indirect
upgrades to improve energy efficiency energy use, member companies provided
are resource intensive; therefore, when data for electricity use generated offsite
134.1 Million
significant capital investments are and purchased steam use. Data also reflects
Gigajoules
considered, plant energy use is evaluated. waste heat captured for reuse.
Total Energy Used In 2015
Significant efficiency improvements are Nine companies provided energy data. The
generally undertaken when process lines manufacturing companies that provided
are upgraded or new capacity is built. data for 2015 account for 52 percent of
The quantity of energy consumed is nitrogen and 84 percent of phosphate
important when environmental regulations and potash fertilizer nutrient production
that affect energy costs and natural capacity in the United States2. Both
gas policy are discussed. Within the total energy use and energy use per ton
fertilizer industry, some manufacturers increased by 8 percent compared to 2014
cogenerate energy or use other low impact reported data. Direct energy use was 113
energy sources, such as solar or steam million gigajoules (GJ) in 2015, and indirect 10.6 Gigajoules
per Ton
from waste heat. Such steps contribute energy use was 21.1 million GJ. Energy Used Per Nutrient
Ton Produced In 2015
to sustainability goals by reducing the Participating member companies reported
industry’s overall energy footprint. a total of 1.54 billion GJ of natural gas
used as feedstock for fertilizer production
For the purpose of understanding the
in 2015. This is separate from the use of
magnitude of energy consumed and
natural gas as a combustion fuel.
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
Many times, customers look to their that Herman and Trey Hill of Harborview state tax credits, put the solar power project
agricultural retail providers for advice Farms were smart managers and would only on a strong financial path. The installation
and ideas, but for Willard Agri-Service invest in a project with a good return, so he of the 64 kW system began immediately and
in Maryland, a bright idea came from an began to explore the possibility of bringing came online in 2014. Willard has virtually
enterprising customer. Harborview Farms, solar power to Willard Agri-Service. eliminated the company’s electricity expense
a very progressive customer of Willard Willard applied for and received a rural through the generation of solar power and
Agri-Service, unveiled a 200 kW solar array small business grant from USDA. The grant, selling solar credits. CO2 emissions have also
to provide enough electricity for their entire along with a combination of federal and been reduced by more than 179 tons in the
grain system. Chairman Bob Willard knew short time the system has been in operation.
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Compass Minerals believes a holistic, process used at the Great Salt Lake relies leakage, which has reduced the annual
collaborative, and comprehensive approach on a steady supply of brine to fill its solar amount of brine consumed from the Great
to protecting valued resources while evaporation ponds. As one of several key Salt Lake by 20 percent.
facilitating smart growth is the best stakeholders in the region who rely on the
In addition to the sustainability project, the
approach to managing their facility at the lake, the company has cultivated strong
reclamation plan enables restoration of key
Great Salt Lake in Utah. Two projects at the relationships with stakeholders, state and
regions of the Great Salt Lake while creating
company’s Great Salt Lake solar evaporation federal agencies, and others to advocate for
avian habitats. The plan provides for 30
facility highlight the positive results a the lake’s preservation and protection.
isolated nesting islands that will protect
company can achieve when projects are
To improve the functionality of their solar shorebirds from predators and will create
approached in this manner.
evaporation ponds, Compass Minerals sealed new habitat along a migratory bird flyaway
The all-natural sulfate of potash production many of them with inert materials to reduce of international importance.
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
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TFI.ORG
2015
2014 % Capture
2013
In 2015, TFI revised the data collection template for GHG emissions to be more
consistent with EPA’s GHGRP requirements. Ten companies provided GHG emissions
data in 2015, compared to eight companies in the pilot project (2013-2014 data). Total
GHG emissions reported to the EPA increased from 2013-2015, in part because the
number of participating companies increased. With 91 percent of total fertilizer
nutrient production capacity reporting2, 2015 will become the baseline year. The total
GHG emissions reported for nitrogen and phosphate fertilizer production were 28.4
million and 2.5 million metric tons CO2e, respectively.
Based on the 2015 data reported by participating member companies, normalized
GHG emissions per ton of nitrogen fertilizer production was 1.65 tons CO2e per
metric ton N. For phosphate fertilizer, the normalized emissions were 0.36 tons
CO2e per metric ton P.
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
FERTILIZER
TRANSPORTATION
Fertilizer is produced and Distribution bottlenecks and
transported year-round to meet service issues may restrict nutrient
U.S. farmers’ needs for crop access during key utilization
nutrients. Fertilizer’s journey periods. This disruption could lead
from production to application to reduced crop yields and lower
on the farm requires a variety of food production levels. Fourteen
transportation modes including: companies participated in this
marine vessels, railroads, trucks, metric.
and for some materials, pipelines.
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
1% Other NPK fertilizers 1% Ammonium Nitrate 1% Ammonium Nitrate 1% Other NPK fertilizers
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MOTOR VEHICLE
1.5B ton miles 24% Potassium Fertilizers
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Q3 Q4
23% 26%
22% 25%
20% 23%
22% 25%
28% 22%
15% 30%
24% 25%
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
ut
n
rie rg
nts .o
tew a r d s h i p
FERTILIZER
ON THE FARM
TFI members support a vision support cropping systems that
where all plant nutrients are provide economic, social, and
applied using a measurable environmental benefits. The 4R
and recognized 4R nutrient principles are the same globally,
stewardship framework evidenced but how they are used locally varies
through better crop performance, depending on numerous variables
improved soil health, and cleaner including soil, cropping system,
air and water. For fertilizer management techniques, and
use to be sustainable, it must climate.
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FERTILIZER N P K
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
AGRONOMIC
PROFESSIONALS
Agronomic professionals lead efforts to assist
growers with 4R implementation on the farm and
are an important part of the industry. Whether
creating custom blends of bulk fertilizers or
through precision agriculture techniques for
soil analysis and crop mapping, agronomists
are a valuable farmer resource. Many industry
agronomists are Certified Crop Advisers (CCAs),
having met rigorous standards prescribed by the
American Society of Agronomy. CCA certification
assures farmer customers that their crop advisers
are equipped to apply leading edge technical
knowledge to fertilizer recommendations.
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In 2015, participating industry members reported the number of agronomic professionals within their organizations, as well as
the number of professionals maintaining Certified Crop Advisor (CCA) status. Seven retailer organizations reported accounting
for 0.58 CCAs per location. Ten non-retailer organizations reported accounting for 2.85 CCAs per location.
3.61 Agronomists
at each non-retail location
2.12 Agronomists
at each retail location
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
By implementing 4R principles and best up to 10 times more for their water, changing their yield while minimizing their inputs.
practices to reduce fertilizer and water the value of certain crops and contributing Agrium’s crop advisers work with growers
consumption, growers in the California to price hikes in produce. to use lysimeters (devices that measure the
Central Valley are trimming their costs, movement of water through soil) to monitor
The quality of California’s drinking water
while stewarding precious water resources in nitrate levels at the crops’ root zone to
has also become a concern after high levels
the region. help prevent the leaching of nutrients into
of nitrates were discovered in 2012, causing
groundwater.
The valley between the Sierra Nevada the State Water Board to enact stringent
Mountains and the California Coast Range regulation, requiring growers to regularly By using lysimeters and field monitoring
is arguably the world’s most productive report water quality to the Board. services, Agrium is providing growers with
agricultural region. However, persistent best management tools and data to help
Using Agrium’s Certified Crop Advisors,
drought conditions have challenged the meet financial and environmental goals on
growers are closely monitoring their
industry in recent years. Growers are paying the farm.
nutrient and water usage to maximize
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
The Andersons, Inc., provides agronomic when we evaluate new business processes.” raise awareness of the need for nutrient
services and expertise through their multi- stewardship. The Waterloo farm center
Nick Jackson is the general manager of
state network of agricultural retail outlets. hosted a 4R grower outreach event with
The Andersons’s farm center in Waterloo,
4R Nutrient Stewardship serves as a model USDA Natural Resource Conservation Service
Indiana, The Andersons’s newest retail
for the company’s nutrient stewardship staff in attendance. Events such as this
dealer to achieve 4R certification. Located on
efforts. Cary Myer, director of farm center bridge the gap between nutrient stewardship
the far west edge of the Western Lake Erie
operations, believes the 4Rs are not only and conservation.
Basin (WLEB), Nick recognized the need to
the right thing to do, but are also a solid
incorporate the 4Rs into the business model “4R puts us in a position where we can really
business model that can be applied to all of
as 95 percent of their growers operate in partner with our growers at a much deeper
The Andersons’s farm centers, regardless of
the WLEB. The educational aspect of the and more comprehensive level. It expands
location. “It’s consistent, it’s measurable, it’s
4R program helps The Andersons reach our level of service and value-add to our
practical, and it’s effective. Those are four
out to growers in nontraditional ways and customers,” Nick said.
critical boxes that we want to checkmark
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The Nutrients for Life Foundation educational resources. In the last year,
(NFLF) is focused on educating the NFLF distributed 365,406 resources
next generation of leaders on the and outreach materials to 237,514
value of fertilizers. Celebrating teachers from across the country. In
its 10-year anniversary in 2014, just the past year, 6.1 million students
NFLF released Feeding the World & were impacted.
Protecting the Environment for use
in AP environmental science classes.
Through targeted efforts to increase
adoption of these classroom materials,
students use them to examine the
4R Nutrient Stewardship framework,
learn about essential plant nutrients,
and study the fertilizer manufacturing
processes. Additionally, students
consider various federal regulations,
such as the Clean Water Act, in
relation to fertilizer-manufacturing.
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
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4R RESEARCH FUND
In 2013, the 4R Research Fund was created to providing growers the tools they need maintained by the Foundation for Agronomic
by the fertilizer industry to help establish to remain profitable while protecting the Research (FAR), a non-profit 501(c)(3)
sustainability indicators and environmental environment. research and education foundation managed
impact data to expand 4R nutrient by the International Plant Nutrition Institute
In 2015, the U.S. fertilizer industry
stewardship implementation across North (IPNI). Funded projects are reviewed and
contributed $1,006,000 to the research fund,
America. The fund provides needed resource recommended by a multi-stakeholder
and four U.S. projects totaling $366,365
support with a focus on measuring and technical advisory group before final
were awarded to university researchers.
documenting the economic, social, and approval by an industry fund management
Information about projects awarded in 2015
environmental impacts of 4R nutrient committee.
are available online. The 4R Research Fund is
stewardship. The industry is committed
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2016 STATE OF THE FERTILIZER INDUSTRY REPORT
FOOTNOTES
1. The information provided herein is on an “as is” basis. TFI (including its Officers, directors, employees, and member companies) accepts
no responsibility for any inaccuracies, does not make any warranty or representation, either express or implied, regarding its accuracy,
completeness, or utility; nor does TFI (including its Officers, directors, employees, and member companies) assume any liability of any
kind whatsoever resulting from the use or reliance upon any information, material, or procedure contained herein, including but not
limited to any claims for damages, loss, or injury regarding health, safety, or environmental effects.
2. Calculated using participants U.S. production capacity as reported for the year ending June 30, 2015 in the September 2016 North
American Fertilizer Capacity Report prepared by the International Fertilizer Development Center.
3. International Fertilizer Association’s Production and International Trade Committee, 2015 Ammonia and Processed Phosphates
Production Statistics.
4. John Dunham and Associates, Inc. Economic Contribution of the U.S. Fertilizer Industry, 2016.
5. Employee safety data is self-reported to the U.S. Occupational Safety and Health Administration using the North American Industry
Classification System (NAICS). This data represents codes 325311, 325312, and 325 for manufacturing and 325314, 424910, and 424 for
blenders and wholesalers.
6. This data on transport distance represents 64 percent of the total tons transported by the reporting companies.
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