what did calm say about fertilizer problem?

In its recent Q3 2026 earnings call (April 2026), Cal-Maine's management directly addressed the ongoing volatility in the fertilizer market. This is a critical issue for the company because fertilizer prices dictate the cost of corn and soybean meal, which make up the vast majority of their chicken feed expenses.

CEO Sherman Miller reassured investors that Cal-Maine is largely insulated from near-term fertilizer shocks. Here is how they are handling the problem:

• Inputs are Locked: Miller stated that, according to the company's agricultural consultants, "probably 90% of the inputs have already been locked" regarding fertilizer for the upcoming season.
• Downstream Hedging: To protect against the ripple effect that fertilizer costs have on actual grain prices, Cal-Maine is actively utilizing "grain warehousing basis locks" and other financial hedging strategies to cap their feed costs.

While the broader agricultural sector is currently facing heavy uncertainty regarding fertilizer affordability for the 2026–2027 crop seasons, Cal-Maine signaled that they have aggressively hedged their exposure to prevent these macro problems from inflating their feed costs and destroying their margins.