In the last week I have received several emails and phone calls from people regarding whether or not the Federal Conservatives should have killed the Potash deal with BHP or not. One of the interesting emails I received was from Barry Senft the CEO of the Grain Farmers of Ontario (GFO). Senft and the Grain Farmers of Ontario membership believe that the issue is not about who owns Potash Corp but what happens with the future of the potash price cartel called Canpotex. The GFO feels that not enough has been made about the inflated value of potash due to the pricing cartel for international export.
Barry Senft is the CEO of the GFO
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Potash is a considerable input to the production of corn in Ontario and according to Senft, if the Potash €“ BHP deal had been allowed the price of the resource to farmers would of without question gone down. In the interview above Senft told me that it should be no surprise that Saskatchewan farmers didn€™t want the deal to be approved because the farmers of Saskatchewan have ample potash in the soil and don€™t need to buy it. Senft continued that the Loss in tax revenue that has been mentioned by Premiere Wall is in relation to the price of Potash falling because BHP would not participate in the cartel.
Is Barry Senft and the GFO correct? Would this deal of meant lower potash prices for farmers in Onatrio and other areas of Canada other than Saskatchewan?