Why Invest In Fertilizer and Potash Miners

Population growth combined with potential inflationary effects could lead to increased demand for food.  Increasing populations with declining arable land per capita will force farmers to boost yield using the key ingredient potash.  There is a limited supply of potash which is controlled by only a few companies.  These players are trading at half their all time highs set back in 2008.  I believe that we may be near the bottom in this sector and investors may do well over the next few years.   I expect prices to rise later this year as the large giants have already signed contracts with China and India.  Other players may have to look elsewhere.

 

Potash or potassium salts are amazing fertilizers.  They make the plant stronger and improves output.  Potash helps the physical condition of the crop boosting vitality.  It helps a plant's immunity to withstand drought, infection and parasites.  Do not forget that potash is also used in drilling, building materials, paper, pharmaceuticals and other products.  

 

Disclosure: Jeb Handwerger owns shares in Passport Potash and the company is a sponsor on my website.