U.S. farmers are cutting back on spreading fertilizer this autumn in response to a drop in crop prices to multi-year lows and a delayed harvest, dealers say, warning of a pullback that will be felt from grain markets to Canadian potash mines.

    Ten of 12 U.S. farm retail companies surveyed by Reuters say fertilizer sales this autumn are lower than they were last year. The dealers, which span the country’s main growing areas, sell fertilizer, seed and chemicals.

    Reductions in fertilizer use of an estimated 10 to 50 percent by volume could hit profits of producers such as Potash Corp. of Saskatchewan and Mosaic Co. since U.S. buyers typically pay a premium for some fertilizers such as potash.

    Lower fertilizer use in the world’s biggest corn-growing country could also point to smaller yields and reduced U.S. corn production in 2015, depending on weather and the size of the planted area.

    Some U.S. dealers say there is still time for fertilizer sales to recover to last year’s levels once farmers complete the harvest. But others fear a slump that could stretch into 2015 as low crop prices push purchases out of reach.

    “We’re having customer after customer telling us they’re having trouble with their banks,” said Randy Stephens, president of Texas-based SureGrow Ag Products. He sees farmers cutting back by as much as 50 percent on autumn fertilizer usage.

    Farmers also face dwindling credit availability based on projections that prices for next year’s crops will remain weak, he said.

    Chicago nearby corn futures Cc1 earlier this month touched their lowest price since 2009 on expectations for the biggest harvest ever.(SD-Agencies)