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1 What is phosphate used for? Phosphate is mined and then processed to become the fertilizer used by farmers and gardeners across America. Additionally, phosphate is used in hundreds of other products, ranging from medications to colas to fine china. Florida’s phosphate reserves provide 75% of the phosphate used in America. 4 Do farmers need to use fertilizer? Every season, plants draw from the soil the nutrients they need to grow. When a crop goes to market, so too does the phosphorus, potassium, and nitrogen it has absorbed and used throughout the growing season. When farmers fertilize, they put back into the soil the nutrients their next crop will require. fertilizer? 7 What would happen to food prices without local water supply? 9 Does the phosphate industry harm the One of the greatest benefits of fertilizer is affordable food. With the help of commercial fertilizer, North American farmers are able to produce the most abundant, nutritious, and affordable food on the planet. In fact, it’s one of the main reasons why people on this continent spend less for food than any other place on earth. No. The permits under which the phosphate industry operates require that the water coming out of our facilities be clean enough to support recreation, fish, and wildlife uses and that it not degrade surrounding waters. FLORIDA PHOSPHATE COUNCIL The Florida Phosphate Council is a trade association composed of: CF INDUSTRIES, INC. CARGILL FERTILIZER, INC. IMC PHOSPHATES COMPANY PCS PHOSPHATE-WHITE SPRINGS U.S. AGRI-CHEMICALS CORPORATION Steven L. Pinney Chairman of the Board Herschel Morris Vice Chairman of the Board COUNCIL STAFF Mary Lou Rajchel President/CEO Robert A. Hugli Senior Vice President, Governmental Affairs Bruce D. DeGrove Director, Regulatory Affairs Andy J. Ellis Director, Communications 1435 East Piedmont Drive • Suite 211 • Tallahassee, FL 32308-7938 850-224-8238 • Fax 850-224-8061 • 1-866-352-7265 (toll free in Florida) Or you may contact us at: www.floridaphosphate.org 10 Have environmental impact studies been 2 What is fertilizer? Think of it as plant food. Fertilizer combines the nutrients that plants need to grow – phosphorus, potassium, and nitrogen – in a form they can digest. As crops grow, they absorb nutrients from the soil. When the crops are harvested, so too are the nutrients they have absorbed. Fertilizers nourish the soil by returning the “food” that next year’s crops will need to grow. Phosphorus is the plant world’s equivalent to carbohydrates—it provides the energy plants need to grow. With phosphorus, plants are healthier, have stronger root growth, and use water more efficiently. phosphate come from? 5 Where does the phosphorus in Florida The phosphorus in fertilizers produced in Florida comes from ancient seabed deposits of phosphorus-laden sediments. The phosphate rock from these deposits is processed to create water soluble compounds that make the phosphorus available to plants as a nutrient. to use less fertilizer? 8 Wouldn’t it be better for the environment conducted to determine the impact of proposed mines? growing world population? 6 What role do fertilizers play in feeding a As a result of advances in agricultural practices, farmers have been able to reduce the amount of fertilizers they use on their crops. However, there is a fine line between using just the right amount of fertilizer and not replenishing the nutrients needed to keep pace with today’s high-yield farming. Last year, farmers only replaced 75% of the phosphorus their crops removed from the soil, and just over 50% of the potassium plants used. More of both nutrients are needed, or yields will diminish. But that’s not the only problem associated with depleting nutrient reserves. Unhealthy soil also reduces a plant’s ability to withstand harsh weather, disease, and other stresses. Nutrient-starved plants cannot maintain soil moisture, which leads to soil erosion from wind or water. 3 Are there chemicals in fertilizer? Chemicals are the building blocks of every material, living and non-living. The three main ingredients in fertilizer— phosphorus, potassium, and nitrogen—come from nature. They are not man-made. Fertilizer companies simply convert them into forms that plants can easily use. Fertilizer producers blend nutrients into precise combinations to match the unique needs of different farms, crops, and fields. In this way, farmers can feed their soils with the most effective blend of phosphorus, potassium, and nitrogen to achieve optimal yields. Fertilizers play a critical role in helping feed the world. Thanks to modern fertilizers, world food production has more than doubled since 1960. In fact, an estimated onethird to one-half of our global food supply is directly linked to use of commercial fertilizers. As the world’s population grows, so too will the demands placed on farmers. Even today, without fertilizers, we’d have to farm every available acre outside urban areas—including forests, wildlife habitats, and leisure areas. Yes. There have been numerous in-depth studies of the environmental effects of the phosphate industry. These studies have been reviewed and approved by the Southwest Florida Water Management District, the Florida Department of Environmental Protection and the U.S. Army Corps of Engineers. In addition, Florida passed legislation during the 2003 session providing for a comprehensive environmental study of the Peace River Basin. The study will examine all factors possibly affecting the river, including other industries, development, and weather. acreage mined each year? 11 Will the proposed mines increase the No. The proposed mines are replacement mines and will not increase the acreage mined each year. Additionally, the acreage reclaimed each year is nearly the same as the acreage mined. reclaimed? 12 Is all land mined by the phosphate industry Florida law requires that all lands mined after 1975 be reclaimed. In addition, the phosphate companies pay a special tax into a trust fund to pay for the cost of voluntarily reclaiming lands mined prior to 1975. General footnote: The industry data in this fact sheet was obtained from the Florida Phosphate Council’s five member companies, the Tampa Port Authority, Enterprise Florida, and the International Fertilizer Industry Association. Additional information was obtained from the Fertile Minds Program by the PotashCorp, found on the web at www.fertile-minds.org. 13 How can I learn more about the Florida phosphate industry? Visit our website at www.floridaphosphate.org. rgg Florida Phosphate Council 1435 East Piedmont Drive, Suite 211 Tallahassee, Florida 32308-7938 Prsrt Std U.S. Postage PAID Action Mail 32809 * Data for calendar year 2003 A s one of Florida’s oldest and largest industries, the phosphate industry is a vital part of Florida’s economy. Phosphate is a multi-billion dollar industry – multi-billion in payroll, product, and capital investment. Our industry contributes substantially to Florida’s economy by providing more than 6,000 jobs directly and more than 30,000 jobs indirectly. These jobs are an essential part of the diverse economy Florida needs. We also are a critical link in the chain of American farming and food production. In fact, 75% of the phosphate America’s farmers and gardeners depend on comes from right here in Florida. Without this plant food, our farmers could not maintain the food supply we enjoy as Americans. We are proud to make these economic and agricultural contributions while remaining committed to environmental stewardship. We recycle 90% of our water, plant millions of trees, and return the land we use to its natural beauty. Today you will find natural habitat, parks, playgrounds, and neighborhoods on lands we have mined. For over a century, we have lived and worked here. We are rooted in Florida’s past, and committed to Florida’s future. Production Employment t year-end 2003, 6,173 employees received a total compensation of $445.6 million, including fringe benefits. In 2003, the average total compensation for a phosphate industry employee was $72,000. And, for each of these jobs, at least five others exist because of the industry in related fields, such as contracting, shipping, consulting, processing, blending, and farming. The Port of Tampa attributed more than 41,000 jobs and $5.9 billion in total economic contributions to phosphate and related chemical industries in 2001. Thanks to major industries such as the phosphate industry, the Port of Tampa has contributed $13 billion to Tampa Bay’s economy and employed more than 107,000 people. Investment he industry owns or has mineral rights to 443,210 acres of Florida land. It also has a multi-billion dollar capital investment in the state. It is estimated that $195.8 million will be spent on new construction and replacement of plants and equipment in 2004. D uring 2003, 28.7 million metric tons of phosphate rock were extracted from 4,501 acres of land. A T T Florida provides approximately 75% of the nation’s phosphate supply and approximately 25% of the world’s supply. Nitrogen, phosphorus, and potassium are the three primary nutrients in fertilizer. For phosphate rock mined in Florida, 90% is used to make fertilizer. Of the remaining 10%, half is used in animal feed supplements. The remaining 5% is used in a variety of products, including vitamins, soft drinks, toothpaste, light bulbs, film, bone china, flame resistant fabric, optical glass, and other consumer goods. There is no substitute for phosphorus, which is essential for all living things. Formed in Florida millions of years ago, phosphate rock is insoluble. It must be converted into soluble finished products for use in fertilizer. Enterprise Florida, Inc., fertilizer was one of the state’s leading export commodities with a 2003 value of $1.342 billion. The International Fertilizer Industry Association reported that during 2001, the United States accounted for 52% of world trade in ammonium phosphate, mostly in the form of diammonium phosphate (DAP). • Florida provides 75% of the phosphate America’s farmers and gardeners depend on everyday. • In 2001, the Tampa Port Authority reported that phosphate and phosphate related industries created 41,275 jobs and $5.9 billion of economic impact in the Tampa Bay Region from direct, indirect and induced economic activity. • More than 30 million trees have been planted by the phosphate industry since 1980. • Phosphate industry severance tax dollars provide $10 million a year to the Conservation and Recreation Lands Trust Fund. Since 1979, $502 million has been directed to this trust fund from phosphate severance tax revenue. In 2003, the industry spent $71.7 million on capital expenditures for systems to control and treat pollution and conserve water. An additional $140.9 million was spent to operate, maintain, and monitor these pollution control and water conservation systems. Total environmental control costs for the phosphate industry were $214.6 million in 2003. Phosphate companies work closely with environmental organizations, citizen groups, local governments, and regulatory agencies to address industry issues. Many of the regulations under which the industry operates were developed through technical advisory committees, drawing on expertise from a wide variety of fields. Our companies are committed to working with environmental and community representatives to open lines of communication, explain industry processes, answer questions, and address possible concerns. In addition, since 1979, the Conservation and Recreation Lands Trust Fund (CARL) program has received over $502 million from the phosphate industry severance tax. General Expenditures he industry purchased a variety of supplies and services in 2003. $1,360,330,086 $126,544,712 $4,546,274 $164,900,285 Reclamation ince July 1, 1975, Florida law requires that all mined lands must be reclaimed. In the last 10 years, $326,375,713 has been spent on mandatory and nonmandatory reclamation projects. Mined land has been reclaimed for agricultural, recreational, residential, commercial, and industrial purposes. Sanctuaries for birds and other wildlife have been established on reclaimed lands. Since 1980, more than 30 million trees have been planted. The companies have also donated thousands of acres of land to state and public entities for recreation and wildlife habitat. The industry continues to work with the Department of Environmental Protection and other agencies to achieve reclamation results that help restore ecosystems and benefit wildlife. S Taxes n addition to jobs, the industry makes an important economic contribution to Florida in the form of taxes and fees paid each year. In 2003 more than $85.9 million in severance, property, sales, and other taxes and fees were paid. Severance tax paid since 1971 Severance tax paid in 2003 Property taxes paid to counties in 2003 Sales taxes paid in 2003 $1,597,212,482 $36,942,482 $30,879,284 $14,880,295 Total Equipment and Supplies Services Electricity Telephone Other Services I Transportation ost phosphate rock and products are transported by truck or rail to ports where they are shipped overseas or across the Gulf of Mexico to the Mississippi River. Land transportation costs for 2003 were: Truck Rail $36,487,689 $162,137,500 Major Finished Products (Short tons available to be shipped) Diammonium Phosphate (DAP) Monoammonium Phosphate (MAP) Superphosphoric Acid Triple Super Phosphate Phosphoric Acid Animal Feed Supplements Sulfuric Acid 8,554,846 3,443,484 573,153 971,235 21,550 1,110,209 315,801 M Water Safety he industry is proud of its safety record and employee safety training programs. During 2003, there were 12,973,343 man-hours worked. Employees averaged 589,697 hours of work for every lost time accident. Further, concern for safety extends not only to member company employees and their neighbors, but also to companies that provide contract workers for the industry. A contractor safety-training program is required for the safety of those who work at member company sites. During 2003, more than 4,200 contractors received the basic or refresher Florida Phosphate Council Contractor Safety and Health Training Program. The curriculum is regularly reviewed and updated. The member companies frequently discuss and update security measures at their facilities in light of the events of September 11, 2001. T Guiding Principles The first $10 million collected in severance tax each year is directed to the Conservation and Recreation Lands Trust Fund (CARL). The state uses this money to purchase and manage environmental and recreation lands. Since 1979, the CARL program has received over $502 million from the phosphate industry severance tax. The remaining money collected in severance tax each year is now divided among the state’s General Revenue Fund, the Nonmandatory Land Reclamation Trust Fund, the Minerals Trust Fund, the mining counties, and the Florida Institute of Phosphate Research (FIPR). Although funded by the phosphate severance tax, FIPR is an independent state research agency created by the Florida legislature in 1978. O perating in a safe and environmentally sound manner is economically sensible and is a fundamental part of the Florida Phosphate Council’s Guiding Principles (GPs). The GPs form the basis of a commitment by our industry. In 2003, the phosphate industry gave $2.03 million dollars for the benefit of United Way agencies in Florida. Also, $443,386 was donated to other charities for a combined average donation exceeding $400 per phosphate industry employee. In addition, many public service and community organizations and agencies benefited from the commitment of time and financial support by the industry. In addition, more than $11.5 million was spent for the use of pipeline transmission to and from the Port of Tampa. During fiscal year 2003, more than 19 million tons of phosphate-related materials were shipped through the port. About 40% of the liquid and bulk tonnage shipped through the Port of Tampa is phosphate-related. The Port of Tampa is the state’s largest port in tonnage shipped and ranks in the top 20 nationally. he industry is well aware of its need to conserve water as a valuable resource. Industry-wide, about 95% of the water needed in the mining process is recycled. This is done by recovering, storing, and recirculating the water. In the manufacturing processes, 90% of the water used is recycled. To further reduce the industry’s need to pump ground water and to assist local governments, some facilities use treated domestic wastewater as part of the makeup water needed to operate. In 2003, this usage allowed local governments to dispose of more than 2.1 million gallons of treated wastewater each day without adverse environmental effects. An additional 8 million gallons of domestic wastewater discharges were used daily as a heat source and returned to the wastewater facility as cooling water, conserving energy and ground water resources. T In order to reduce groundwater pumping, as requested by Water Management Districts, the industry has been increasing its use of water from rainfall. Environment he protection of the environment is a primary concern for member companies and their employees as witnessed by the voluntary adoption of the Council’s Guiding Principles. This initiative, described earlier, challenges our member companies to reach for continuing excellence in protecting their employees, communities, and the environment. Exports hough the industry’s most important market is domestic, phosphate exports play a major role in the industry’s viability and Florida’s economy. Phosphate related goods are the number one export from the Port of Tampa. During 2003, the Port of Tampa reported 39 countries as phosphate export destinations, including Australia, Brazil, China and Mexico. According to T T