It was an interesting week in agriculture with Potash Corp of Saskatchewan and Agrium sitting down to talk about a potential merger.

There's no word yet on how in depth talks are regarding a potential merger that would create an agriculture giant in the fertilizer industry in Canada with a major impact globally.

Paul Martin is a Business Commentator for Golden West Radio, he is a Director with Gensource Potash and says it will be interesting to see what comes out of the discussions.

"At the end of the day if you believe in the theory of buy low, sell high, obviously PotashCorp and Agrium, well PotashCorp particularly is much more lowered value than it was three or four years ago. You think back to the BHP deal, that was a $50 billion takeover, now the company is worth $17 billion so that's a huge change, that's two-thirds the value off the company. Then when assets are cheap you see interest in people buying them."

He says it's a big story and reflects just how hot agriculture and investing in agriculture is right now.

"It's hard to tell at this point because we really don't know if there will be a deal or what the nature of that deal looks like. These are the realities of the business world, you get companies to come together. Some would argue these are already big companies so big companies getting bigger."

Does it change anything?

"No, not really," Martin quipped.

 The merger talks come as the fertilizer industry struggles with a steep drop in prices in recent years that has forced PotashCorp to slow their production. PCS is the world's largest producer of Potash while Agrium not only produces the fertilizer ingredient but has its own large retail agricultural network.

PotashCorp operates five mines in Saskatchewan: Lanigan, Allan, Cory, Patience Lake and Rocanville. Agrium's sole operation in the province is its Vanscoy mine.