North Carolina : Raleigh: Cooperative Fertilizer Service, Inc. Winston-Salem: International Minerals & Chemical Corp. Ohio: Columbus: The Smith Agricultural Chemical Co. Oklahoma: Muskogee: Consumers Co-operative Association. Oregon: Portland: Oregon-Washington Fertilizer Co. Houston: Gulf Chemical Co., Inc. Port Arthur: Manhaden Fisheries Co. Mr. ABERNETHY. Mr. Gran, do you have a statement to file for the record? Mr. GRAN. Yes, sir. Mr. ABERNETHY. That permission will be granted. (The statement referred to is as follows:) STATEMENT OF THE AMERICAN PLANT FOOD COUNCIL, INC., TO THE SUBCOMMITTEE ON FERTILIZER AND FARM MACHINERY OF THE HOUSE COMMITTEE ON AGRICULTURE IN REGARD TO THE FERTILIZER SITUATION MARCH 18, 1949. SIRS It is apparent from statements made to this committee by representatives of Government agencies and private concerns during the hearings this week that production of nitrogen-bearing chemical compounds is now at the annual rate of approximately 1,500,000 short tons of contained nitrogen (including four Government-owned plants) and that our total export is roughly 280,000 tons while imports amount to 225,000 tons, leaving the United States in a netexport position of about 55,000 tons nitrogen. Estimates seem to indicate that the remaining balance of approximately 1,445,000 tons includes 360,000 tons in forms for industrial uses and 1,085,000 tons for agricultural consumption. Although agricultural consumption of nitrogen fertilizers now is about three times the prewar average rate (1935-39 average = 371,000 tons nitrogen per year), the evidence seems to indicate a tight supply situation at present. A proposed increase of 57 percent in exports of Government-produced nitrogenousfertilizer materials to south Korea, Japan, and the Ryukyu Archipelago appears to counteract easing of the supply situation during the coming fertilizer year July 1, 1949, to July 1, 1950. It seems the Government now is producing fertilizers for those foreign areas at the rate of 176,000 tons contained nitrogen, and that it is proposing to increase this to 280,000 tons for the year ending June 30, 1950. PHOSPHORUS Production of phosphatic fertilizers known as superphosphate reached an alltime peak in the United States during 1948, according to monthly production reports of the Bureau of the Census. Figures compiled from the reports indicate that a total of 9,450,262 equivalent short tons (basis 20 percent available PO) were produced in 1948, which was 175,061 tons greater than the 9,275,081 tons produced the previous year and almost three times the amount that American farmers used as a 1935-39 prewar average. It is noteworthy that a 21-percent increase in production of concentrated superphosphate accounted for the over-all increase above the previous year, as the figures for production of ordinary grades and wet base goods indicated substantially no change. The 463,878 tons of concentrated superphosphate (basis 45 percent available P2Os) produced in 1948 is roughly two and one-half times the amount produced in 1938. In addition, press reports indicate that an additional 200,000 tons concentrated superphosphate is beginning to come into production. Although it is always difficult to estimate supplies and demands more than a year ahead, it would seem that, barring strikes and unforeseen transportation difficulties, supplies of superphosphate should be ample to meet the over-all demand during the fertilizer year ending June 30, 1950. POTASH American potash producers inaugurated a number of plant improvements and enlargements during 1948, with the result that deliveries of potash in North America continued their upward trend for the ninth consecutive year. Altogether, the five leading producers and three importers delivered 1,173,842 tons of contained K2O an increase of 82,818 tons (7.6 percent) over the previous year. The imported potash salts included in these figures were of French and German origin and totaled 40,069 tons K2O. The small importations from Russia are not included. Agriculture received about 911⁄2 percent of the total potash deliveries, with 7% percent going for chemical purposes and only about 1 percent being exported. The record of achievement by the American potash producers is best shown by the attached chart. Since 1938 there has been a constant increase in pro 90066-49-ser. g- -12 duction each year from 283,369 tone K.O to 1,143,775 tons delivered by American companies alone in 1948-a fourfold increase during the decade! Looking ahead, it is estimated that deliveries for agricultural and chemical purposes in North America in 1949 will be around 1,322,842 tons K0-an increase of about 13 percent over 1948. As the world's large supply of exportable potash is located in the Russian zone of Germany, imports are expected to be about the same as in 1948, so the increased deliveries will be from American producers. Predicting the agricultural demand for the fiscal year 1949-50 is even more hazardous than estimating production. However, if there is no radical change in our agricultural picture, potash supplies are expected to be sufficient to meet the over-all demand during the 1949-50 fertilizer year. FERTILIZER CONSUMPTION Consumption of mixed fertilizers and fertilizer materials by American farmers increased rapidly each year since 1937 with phenomenal increases occuring in the last few years. During the 1935-39 period, the average consumption was 7,588,000 tons compared with an estimated record-breaking 18,250,000 tons in the calendar year 1948. From all indications, fertilizer consumption during the calendar year 1949 will be around 19,500,000 tons. (Note attached table showing yearly consumption figures.) RECOMMENDATIONS In view of the fertilizer situation as outlined, we recommend that the Congress reaffirm its faith in the American system of competitive private enterprise by directing that Government-owned plants capable of producing fertilizer compounds should be sold or leased to private agencies at the conclusion of an emergency, or that they be maintained in stand-by condition pending the occurrence of another emergency situation. Continued threats for further Government encroachment into the fertilizer business whether under the guise of experimentation or otherwise, are not conductive to the proper growth of the industry or the best interests of American farmers. Respectfully submitted. THE AMERICAN PLANT FOOD COUNCIL, INC., Fertilizer consumption in United States1 (mixed fertilizers and separate 1 Includes Hawaii, Puerto Rico, and Alaska. 13,988,000 16,087,000 17, 250,000 * 18, 250,000 2 All fertilizers, including raw rock phosphate, gypsum, minor element materials, and fertilizers distributed by Government agencies. Estimated. |