Calgary-based fertilizer producer Agrium reported a 92 per cent drop in third-quarter earnings Wednesday, as farmers conserved cash through the recession.

Agrium, which reports earnings in U.S. dollars, said it earned $26 million, or 16 cents a share compared with $367 million or $2.31 a share in the same quarter last year.

Agrium predicts sales will pick up later this year or in early 2010 as farmers make up for cutting back on fertilizer over the last year. (Charlie Riedel/Associated Press)

CEO Mike Wilson predicted, however, that sales will rebound late this year and into 2010.

"The majority of our customers recognize that they have been depleting their soil of nutrients and we believe they are anxious to apply close to normal application rates this fertilizer year," he said.

How soon that pickup comes depends on when wet weather which has delayed the harvest in the U.S. Midwest comes to an end. As of mid-October, Wilson said, harvest progress for corn and soybean crops was 50 per cent behind normal levels — one of the slowest harvests on record.

The company's shares closed down eight cents to $51.23 on the Toronto Stock Exchange Wednesday.

With files from The Canadian Press