As we enter the 2016 year, we are seeing some dramatic changes in agriculture. While we will discuss some of these trends at our Grower Meetings, I would like to address a few matters in this letter.
- RUMORS -There have been numerous rumors saying that TH has been sold. This is FALSE! We are still an independently owned, Wisconsin-based corporation. It is business as usual at TH this year, with the same dedicated staff as always to serve your needs.
- FERTILIZER - Prices continue to drop. If you haven't purchased any fertilizer yet, I would hold off for a while, as I feel the trend will continue to move downward. I know a number of fertilizer suppliers are saying that logistics will be a problem come spring. If you feel that you absolutely need to book your fertilizer now, make sure you get price protection to guard you in case of future price drops. TH never purchases fertilizer early so that we never get caught upside down. Keep in mind that we only supply fertilizer in truckload lots. Please give us a call when you are ready to purchase and we may be able to save you some money.
- CREDIT - I know many growers are having challenges in getting their operating loans in place for the 2016 season. Depending on the products that you use, however, a number of the basic companies will allow you to finance their products through John Deere Finance. Often the interest is delayed or at very low rates. We do encourage you to have your financing in place for the 2016 growing season. TH has an arrangement with the banks: They don't sell chemicals and we don't loan money.
- CHEMICALS - More and more products are coming off-patent and, because of the competitive nature of the business, prices have dropped significantly and may continue dropping, even into planting season. While we are a distributor for the basic chemical companies, we also work with the generic and off-patent companies. This gives you additional choices for your input costs. I will be putting together a special cash-and-carry price list for the off-patent products. This list should be available the first week of March.
In conclusion, thank you for your interest in and support of TH. It is appreciated! After over 34 years in business, we feel like we know the ups and downs of working in agriculture. We are committed to helping our customers not only survive this downturn in the agricultural sector, but also to come back stronger than ever.
Robert L. Zimpel