Mineweb.com interviewed Fadi Benjamin, a mining analyst with Northern Securities Co., an investment bank based in Canada about a report from the International Fertilizer Industry Association that says "the fertilizer market is on the mend, with demand for
potash rising 3.7% per year. Today, U.S. potash prices are at about $575
per metric ton (mt), compared with $380/mt last year." Potash is used primarily for fertilizer. The US imports 85% or more of its needs.
Benjamin argues that farmers "stopped applying the mineral to cropland for a couple of years [due to high prices]. The
holiday was possible because crops do not consume all of the fertilizer
immediately, and the remainder stays in the soil as a reserve. But now,
all around the globe, the potash content in soils is too low. The
demand for potash has returned, and crop prices have significantly
increased. We are now in a world of $7.90 spot corn prices, $16.65 spot
soy and $8.89 spot wheat. It may take two to three years of aggressive
potash application for North American soils to reach 2008 soil levels."