Passport Potash, Inc. (PPRTF) and related Agricultural Investments.
My thoughts on Passport Potash, Inc. (PPRTF) and related agricultural investments.
Because potash is so effective at adding potassium to the soil, which directly increases crop yields, farmers consider use of potash fertilizer to be essential. As a result, the price of potash is supported by a lot of demand from farmers around the world.
Since the production of potash is limited to a relatively small number of companies, there is a substantial amount of revenue being earned by potash producers. This has been a great investment opportunity and should continue into the future. Increasing crop yield is of value to farmers and the best way to do so is to apply potash to crop lands.
Potash prices range from $400-550 per ton as of early 2011. Prices are forecast to average $500 throughout the year. This makes potash a valuable product for producers, many of which have substantial potash deposits. Economical production is key to profitability, however. Many stock analysts have released notices to clients advising them to investigate potash producers.
All investments in resources must be considered part of the investor's risk portfolio. To illustrate the volatility of junior potash company stock prices, market forces pushed most all of the entities down 15-20% or more during March and April of 2011. Those willing to step invest in turbulent issues should be careful but expectant of potential future gains.
Potash is now recognized as being a vital requirement for agricultural production. It is one of the key fertilizers that can be used to greatly increase crop yields. In areas where extensive agriculture has been used, potash can restore potassium depleted soils. The price of the material has risen greatly over the years.
With the economic slowdown in 2008, potash prices dropped but have risen steadily since. As the compound is a major factor in crop yield and is not a byproduct of petroleum production, potash price should continue to be significant. Thus holding stocks like Passport Potash, Inc. (PPRTF) might prove a wise investment decision and part of a well-diversified stock portfolio.