Episode 7 | Taking a Different Look at the Fertilizer Landscape

Transcript of Podcast Video

Transcripts have been lightly edited for clarity and readability. 

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Chris Carlson

Gentlemen, welcome to At the Table with Central Valley Ag. I’m Chris Carlson, Senior Vice President of Agronomy, and I’ll be your host today.

We’re going to take a different look at fertilizer—how the landscape has changed, what’s happened over the last five to ten years, and what the future might look like. We’ll also touch on the relationships we have today in the fertilizer world.

Joining me today are Jeremy Sprunk, Director of Fertilizer for Central Valley Ag, and Logan Reichter, CEO of Consolidated Ag Solutions.

Jeremy Sprunk

Hello, Chris.

Logan Reichter

Thanks for having me.

Chris Carlson

Glad to have you both. Let’s dive into everyone’s favorite topic—fertilizer.

Logan, why don’t you start by giving us an overview of Consolidated Ag Solutions and your relationship with Central Valley Ag?

Logan Reichter

Absolutely. Thanks, Chris.

I lead procurement efforts for Consolidated Ag Solutions, a cooperative-led partnership focused on bringing scale, expertise, and buying power to our member-owners. Our primary focus is fertilizer procurement and strategy, helping members stay competitive in an increasingly complex global market.

On a day-to-day basis, my role centers on strategy and coordination—working with members and suppliers to manage risk, analyze markets, develop procurement strategies, and identify opportunities that bring value back to our members. Ultimately, our goal is to help you remain competitive at the local level.

Chris Carlson

Great overview—thank you.

Jeremy, can you talk about your role and how you work with Consolidated Ag Solutions?

Jeremy Sprunk

Sure. My day-to-day role involves working with our regional sales managers on forecasting—where we think demand is headed and how we align supply to meet it.

I also manage inventory—tracking supply levels and moving product between locations or regions as needed. Then there’s the ongoing collaboration with Logan and his team, where we’re essentially in the market every day, evaluating pricing and opportunities.

We provide forecasts to support procurement decisions and adjust as needed. There are a lot of moving parts—especially when you factor in transportation like rail and trucking—so it’s a dynamic process.

Chris Carlson

Absolutely. Forecasting is really a snapshot in time and an attempt to predict what’s coming next month, next six months, or even next year. It’s a big job.

Logan, looking back over the last two to five years, it feels like fertilizer has shifted from a more domestic market to a global one. Can you give us some context?

Logan Reichter

Definitely.

The U.S. has always relied on imports to meet domestic fertilizer demand, but the last five years—especially since COVID—have introduced significant global complexities.

We’ve seen supply chain disruptions, geopolitical conflicts like the Russia-Ukraine war, export restrictions from countries like China, and energy market volatility. All of these factors impact global supply.

Because fertilizer production is concentrated in key regions, any disruption—whether from conflict, tariffs, or energy costs—creates volatility not just globally, but here in the U.S. as well.

Jeremy Sprunk

Exactly. Take European natural gas prices, for example—they’ve been elevated for a while. Since natural gas is a key input for nitrogen, that directly impacts production.

Historically, the U.S. wasn’t much of an exporter, but today we’re exporting certain products due to favorable economics. That’s a shift.

Logan Reichter

Right. The U.S. benefits from relatively low-cost natural gas, which gives us a production advantage. That allows us to export at times.

At the same time, demand is growing rapidly in countries like India and Brazil. Their need for fertilizer is increasing faster than ours, which adds pressure to the global market.

Jeremy Sprunk

It comes down to population growth—more people means more food, which means more fertilizer demand.

Chris Carlson

So we’re heavily reliant on global supply.

Jeremy Sprunk

Exactly. It’s a balance between domestic production and imports. Any disruption—whether it’s weather, policy, or tariffs—can throw supply and demand out of balance.

Chris Carlson

Let’s talk about predictability. Some people think forecasting fertilizer is like forecasting the weather—but even that’s not always accurate.

Jeremy, what are some of the unexpected factors we’ve seen recently?

Jeremy Sprunk

There are a lot. Geopolitical events can shift markets overnight—conflicts, policy changes, tariffs.

For example, India issuing a large tender can quickly tighten global supply. These events create immediate impacts.

Logan reichter

It’s a multifaceted market. You’ve got energy markets, geopolitics, trade flows, and weather—all influencing price and availability.

And timing matters. If a shipment leaves the Middle East today, it may not arrive in the U.S. for weeks. That lag can keep markets tight even after demand slows.

Chris Carlson

That’s a great point.

Let’s shift to vendor consolidation. Over the last five to ten years, we’ve seen fewer suppliers. How has that impacted the market?

Jeremy Sprunk

There are definitely fewer players. In nitrogen, you’re down to a handful of major producers.

Logan Reichter

We’ve seen consolidation across nitrogen, phosphate, and potash. Fewer suppliers means stronger relationships are more important than ever.

Chris Carlson

Absolutely. We rely on those partnerships to ensure supply—just like our members rely on us.

Jeremy Sprunk

Relationships are critical. Trust allows us to plan effectively and navigate challenges together.

Logan reichter

Exactly. You never know when you’ll need to lean on those partnerships.

Chris Carlson

Let’s talk about the relationship between grain markets and fertilizer. Historically, people expected them to move together—but that’s not always the case today.

Logan reichter

There is some correlation, but it’s loose.

Fertilizer is more supply-driven, while grain is more demand-driven. Changes in crop prices can influence fertilizer demand, but they don’t immediately impact fertilizer prices.

Jeremy Sprunk

Right. The market needs to become oversupplied before prices weaken—and that takes time.

Chris Carlson

Looking ahead to 2026, what’s your outlook?

Logan reichter

Logistics will be key. The river system is a major transportation route, and low water levels have slowed movement.

Demand has picked up over the last 45–60 days, tightening supply. Availability for Q2 is still there, but tightening.

Pricing remains supported, partly due to delayed purchasing decisions that compressed demand into a shorter window.

Jeremy Sprunk

We saw that play out recently. Early pricing was higher than expected, so many held off buying. But prices moved even higher, forcing people to step in.

Logan reichter

The market feels more balanced than last year, but logistical constraints and demand timing will continue to drive volatility.

Jeremy Sprunk

And transportation capacity is limited. Moving product—especially during peak season—will be a challenge across the entire industry.

Chris Carlson

Let’s shift to Central Valley Ag. Jeremy, where have we reinvested to support our growers?

Jeremy Sprunk

One major investment is the Courtland Hub in Kansas—about 3 million gallons of UAN storage. It allows us to bring in large volumes efficiently and move product north when needed.

We’ve also invested in hubs like Royal, Randolph, Oakland, and Monroe—focused on speed, capacity, and efficiency during peak seasons.

And then there’s CVA Connect—our digital platform—which allows customers to manage contracts and gives us better visibility into sales and inventory.

Chris Carlson

That digital connection has really improved communication and efficiency.

Let’s wrap up. Any final thoughts?

Jeremy Sprunk

Have a safe planting season. It’s going to be busy, and we’ll see what Mother Nature brings.

Logan reichter

Thanks again for having me.

Chris Carlson

Thank you both. We appreciate the partnership with Consolidated Ag Solutions and everything you do.

That wraps up today’s episode of At the Table with Central Valley Ag. Thanks for listening—we’ll see you next time.

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