2021 Ag Chemical Supply Update

Over the last year, we have all seen and almost become accustomed to disruptions in the supply chains for goods and services. Because of this we want to inform our customers on some of the challenges we are facing in the supply chains of the products we use each day in your fields.

It comes as no surprise that agricultural products are not immune to supply challenges. There are several reasons for these delays, and they all compile into a domino effect of sorts. Here we’ll highlight some of the main challenges, but please keep in mind CHS is in a good position on most of these products today and are continually sourcing more with the help of our teammates at CHS Agronomy.

Zinc 9%

Many of the ingredients needed for this product are made at a factory in Texas. The cold snap Texas had caused severe plant damage and ultimately product loss. Most wholesale companies have removed this product from their price sheets and retailers are not able to order any.

Remedy – We are fortunate that as CHS we have access to our own branded Levesol Zinc and have ample supply of this superior product.

Clethodim & Generic Glufosinate (Volunteer Corn Killer & Generic Liberty)

A factory that makes large quantities of these products had a massive fire late in February. This put pressure on other manufactures of these products late in the production season.

Remedy – CHS took early positions on BASF Liberty 280SL late last summer and have enough on hand to cover prepays. We also are fortunate to partner with CHS Agronomy for our Clethodim needs (Gatlin). We also have access to Fusilade DX from Syngenta that is an excellent volunteer corn herbicide.

In-Furrow Insecticides

Many brands are running out of supply of these products. A decrease in demand over the past 5-7 years has reduced production. Crop prices and insect pressure have increased significantly combined with delayed logistics have caused a severe bottleneck in the system.

Remedy – CHS Agronomy planned for some of this and does have supply of a couple brands, but they are selling quickly. If you have not already planned your needs for these products please do so with your agronomist, we have only two types available.

All other products

Raw ingredients are challenged for multiple reasons, some because of Covid shutdowns, some do to freight logistics and others do to consumer products commanding a larger portion of the shipping availabilities. We are also seeing some issues in the availability of packaging products. So, once the herbicides/insecticides are manufactured they are being held up because there aren’t enough plastic jugs or even cardboard boxes available.

I do not write this with intention of using scare tactics to make you run out and buy more products just to have. My goal is to inform you of the supply challenges we are working with and through. My ask is if you have concerns please contact your agronomist and make sure you have a plan in place. Please know and understand that we are working with our vendors to make sure we minimize the impact of these challenges.

Thank you for your continued business and support!

Written by Jordan Thiel, CHS Agronomy Sales Manager

© 2021 CHS Inc.