No fertilizer, no food. If the Canadian Pacific Railway is stopped by a strike, American farmers may face the choice between buying Russian and Belarusian fertilizer and supporting the war against Ukraine or going without fertilizer at the exact time when food security — due to Russia’s invasion — is already a national security issue. Let me explain.
Yesterday, the Teamsters Union representing the Canadian Pacific Railways announced that its workers had voted overwhelmingly to strike. Unless the issue is resolved before March 15, the agriculture industry and the American farmer may have to choose between fertilizer and food or supporting Russia’s invasion of Ukraine. Some key facts:
1. Fertilizer matters. You have to feed the plants that feed the world. No fertilizer, not enough food.
2. Potash is one of the three major fertilizers needed to grow crops as it is a source of potassium.
3. The three countries with the largest potash reserves and production are Canada, Belarus and Russia.
4. Belarus’ mines were already shut down due to previous sanctions. The US dollars used to purchase Russian and Belarusian tons are helping pay for the war against Urkraine.
5. Canada is thus the only remaining major source of potash for Canada, the US and the rest of the world. Yea! Canada!
6. Canada’s mines are in the middle of their large country, meaning that they rely on the Canadian Pacific Railroad and Canadian National Railroad to transport potash to the US and Canada’s export terminals.
7. Approximately 50% of the Canadian Pacific’s bulk product is potash.
8. A large portion of potash is spread in the spring, early in the planting season. Some is already prepositioned in warehouses but much more is needed to get through the season.
9. Therefore, without the CP functioning this spring, Canadian and American farmers face the very real possibility of going without some of their potash for late spring.
So what?
Without Russia and the Ukraine to potentially supply the world with grains critical to feeding their populations, the Canadian and American farmers are best positioned to supply the extra grains…but only if they can grow them. Which is where the potash — and the Canadian Pacific railroad that delivers it — comes in.
The end result is the potential strike at the Canadian Pacific Railroad is a food security and national security issue for both Canada and the US.
I am a big supporter of living wages and support the Teamsters’ right to organize and demand better wages. But the issue is no longer just about wages. It is about food and national security. Unless the issue is resolved quickly, the rest of us will face the Hobson’s choice of doing without a key fertilizer for spring or supporting Putin and Lukashenko in their war against Ukraine. Please join me in encouraging the Teamsters and the Canadian Pacific to resolve the issue quickly.
